Judge Orders Former HealthSouth Chief to Pay $2.8 Billion to Shareholders
Posted Jun 18 2009 10:44pm
In the case he was acquitted of criminal charges, but the civil penalty is due and payable. When I read stories of such it really does begin to settle in to my mind how closely related Wall Street and Healthcare seem to be. BD
BIRMINGHAM, Ala. (AP) -- An Alabama judge has ordered former HealthSouth CEO Richard Scrushy to pay about $2.8 billion to shareholders due to accounting fraud at the rehabilitation chain.
Circuit Judge Allwin E. Horn ruled Thursday in favor of HealthSouth shareholders who filed a lawsuit claiming Scrushy was involved in a massive accounting fraud that nearly sent the company into bankruptcy.
Scrushy was acquitted in a federal criminal case over the fraud and testified in the state civil case that he knew nothing about it