Scrushy Motion To Expand Shareholder Control Denied

Law360, New York (January 1, 2006, 12:00 AM EST) -- The U.S. Securities and Exchange Commission has dealt embattled ex-HealthSouth CEO Richard Scrushy another blow, ruling that the company does not have to include a motion by Scrushy in its proxy statements.

Scrushy, who was accused by prosecutors of orchestrating the $2.7 billion accounting fraud that rocked the company in 2003, remains the company’s largest shareholder. He had submitted a motion to the board that would have given shareholders the power to expand the company’s board.

"On Dec. 9, 2005, we issued our response expressing our...
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