HealthSouth Investors Can Reseek $3M From Scrushy Charity

Law360, New York (April 11, 2012, 1:43 PM EDT) -- The Alabama Supreme Court on Friday revived a suit alleging jailed HealthSouth Corp. founder Richard Scrushy’s charitable foundation held on to $3 million that should have been part of a $2.9 billion judgment in a shareholder action over the company's accounting scandal.

The appeals court reversed and remanded a lower court decision granting Richard M. Scrushy Charitable Foundation Inc.’s motion to toss a garnishment action by HealthSouth shareholders, who were awarded $2.9 billion in a related derivative action in June 2009.

The garnishment action ran parallel...
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