HealthSouth CEO Ordered To Pay $2.8B For Fraud

Law360, New York (June 18, 2009, 12:00 AM EDT) -- Bringing a derivative shareholder suit to a sensational end, an Alabama state judge has walloped HealthSouth Corp.’s former CEO Richard Scrushy with a $2.8 billion judgment for carrying out a massive and prolonged fraud at the health care services provider.

After an 11-day nonjury trial, Judge Allwin E. Horn III of the Circuit Court of Jefferson County, Alabama, handed down the decision Thursday after concluding that Scrushy participated in the accounting fraud and willfully breached his fiduciary duties as CEO of HealthSouth.

Weighing testimony from five...
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