Wednesday, September 22, 2010

Scrushy ordered to pay $2.8B for HealthSouth fraud - Silicon Valley / San Jose Business Journal:

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billion in damages by a civill court judge for his rolein ’sd massive accounting fraud scandal. The HealthSouth founder was deemeds liable for losses incurredby shareholders, some of whom sued him seekint to recover their Judge Allwin Horn announced the verdict shortlg after 10 a.m. Thursday. Horn’s judgment also declared Scrushy’sw employment agreements with HealthSoutyh void. HealthSouth said it will receive approximately 40 percenft of any money recoveredfrom Scrushy. Attorneyw for the shareholders filed the suit againsty Scrushy on behalf of HealthSouth sayinhg he directed the accounting scandal hadrequestede $3.6 billion.
Scrushy testified during the trial and denied any He was brought to Jeffersoh County for the trial from a Texas federal where he is currently serving seven years forbribinv then-Gov. Don Siegelman for a seat on a state health carepolicuy board. Scrushy was acquitted of criminal charges in the HealthSouth fraudin 2005. HealthSouthn said it is unsure how much might be collectedfrom Scrushy, according to a news “We are pleased to see that justicwe has been served through this judgment and that anotheer chapter of our past has been put behine us,” HealthSouth’s statement

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