Ala. High Court Upholds $3B Scrushy Fraud Verdict

Law360, New York (January 28, 2011, 2:50 PM EST) -- Incarcerated HealthSouth Corp. founder Richard Scrushy has lost an appeal of a $2.9 billion judgment against him in a shareholder derivative action over his role in a fraud that almost destroyed the company.

The Supreme Court of Alabama on Friday ruled that Scrushy had failed to demonstrate an error in any aspect of the trial court's judgment.

The plaintiffs did not fail to invoke the subject-matter jurisdiction of the trial court, and the third amended complaint was not a nullity, the court ruled.

“The amended complaint...
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