Advertisement
 
YOU ARE HERE: LAT HomeCollectionsExecutives

Scrushy Turns Over $17 Million

July 21, 2005|From Bloomberg News

Richard Scrushy, acquitted last month on charges that he led a $2.7-billion accounting fraud at HealthSouth Corp., turned over $17 million in cash to the company he helped found to satisfy a judgment by a Delaware court, his lawyer said Wednesday.

The judgment stems from Scrushy's use of HealthSouth stock in 2002 to repay a $25.2-million company loan. Investors sued on behalf of HealthSouth, alleging that the fraud he directed as chief executive inflated those shares, which later declined in value. In November 2003, Delaware Chancery Court Judge Leo Strine Jr. ordered Scrushy to repay the difference to the company in cash.

Scrushy, who was cleared of 36 criminal charges June 28, wired the $17 million Wednesday to attorneys suing on behalf of HealthSouth, his lawyer, Arthur Leach, said.

A spokesman for Birmingham, Ala.-based HealthSouth confirmed the transaction.

Scrushy continues to fight dozens of investor lawsuits and a civil fraud case by the Securities and Exchange Commission.

Advertisement
Los Angeles Times Articles
|
|
|