Scrushy Must Repay $48M In Bonuses

Law360, New York (August 28, 2006, 12:00 AM EDT) -- Former HealthSouth chief Richard Scrushy will have to turn over $47.8 million in bonuses after the Alabama Supreme Court ruled that he should never have received the money.

The court ruled that since Scrushy received the funds during HealthSouth’s massive accounting fraud scandal, the bonuses were awarded based on false profits, and should therefore be disgorged.

Scrushy had claimed that his contract mandated the bonuses, regardless of the financial state of the company, but the justices dismissed his argument.

“Without annual net income, Scrushy could not...
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