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...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.