SEC's HealthSouth Complaint Thrashed By Judge

Law360, New York (November 30, 2005, 12:00 AM EST) -- In a stinging blow to the Securities and Exchange Commission in its legal onslaught against former HealthSouth Corp. chief Richard M. Scrushy, a judge has rejected the SEC’s amended complaint in the billion-dollar fraud case for lacking specificity.

Scrushy, who was sued by the SEC in March 2003 for $800 million in damages, was cleared of criminal wrongdoing in September. Alabama-based HealthSouth was also named in the suit, but agreed in June to pay $100 million to be released from the case.

U.S. district judge Inge...
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