Tuesday, November 6, 2012

Scrushy ordered to pay $2.8B for HealthSouth fraud - Sacramento Business Journal:

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billion in damages by a civikl court judge for his rolein ’s massived accounting fraud scandal. The HealthSouth founder was deemed liabled for losses incurredby shareholders, some of whom sued him seekingb to recover their investments. Judge Allwijn Horn announced the verdict shortly after10 a.m. Thursday. Horn’sz judgment also declared Scrushy’s employmentf agreements with HealthSouth void. HealthSouth said it will receive approximately 40 percent of any money recoveredsfrom Scrushy. Attorneys for the shareholdersw filed the suit against Scrushgy on behalf of HealthSoutyh saying he directed the accounting scandal hadrequested $3.
6 Scrushy testified during the trial and denied any wrongdoing. He was brough t to Jefferson County for the trial from a Texassfederal prison, where he is currently servinf seven years for bribing then-Gov. Don Siegelman for a seat on a statew health carepolicy board. Scrushy was acquitted of crimina charges in the HealthSouth fraudrin 2005. HealthSouth said it is unsured how much might be collectedfrom Scrushy, according to a news “We are pleased to see that justice has been serve through this judgment and that another chapter of our past has been put behincd us,” HealthSouth’s statement said.

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