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Healthsouth Corp

BUSINESS
May 19, 2006 | From Bloomberg News
HealthSouth Corp. agreed to pay $3 million and serve three years on probation in a deal with the government that spares the company an indictment over the $2.7-billion accounting fraud that almost triggered its collapse. U.S. Atty. Alice Martin, who prosecuted 17 HealthSouth executives for their alleged roles in the fraud, including company founder Richard Scrushy, announced terms of the non-prosecution agreement Thursday.
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BUSINESS
February 24, 2006 | From Associated Press
Investors who sued over a huge fraud at HealthSouth Corp. would get $445 million in stock and cash under a proposed settlement that the rehabilitation chain said would resolve its thorniest legal problems stemming from the scheme. The Birmingham-based company will pay $215 million in common stock and warrants under the global settlement proposal announced Thursday, and insurance companies will pay an additional $230 million in cash.
BUSINESS
February 9, 2006 | From Bloomberg News
HealthSouth Corp. founder Richard Scrushy won a delay from the Alabama Supreme Court, which ruled that he didn't have to pay a $47.8-million judgment against him that was due next week, Scrushy said in a statement. The high court's ruling didn't reverse a trial court decision last month to make Scrushy pay back bonuses that investors claimed he didn't deserve.
BUSINESS
January 20, 2006 | From Associated Press
A writer who turned out a stream of sympathetic newspaper stories about former HealthSouth Corp. Chief Executive Richard Scrushy during his fraud trial says Scrushy secretly paid her $11,000 through a public relations firm and typically read her articles before publication. Documents show that the public relations firm wrote thousands of dollars in checks to Audry Lewis, whose freelance articles appeared in the Birmingham Times, a small but influential black newspaper.
BUSINESS
January 5, 2006 | From Associated Press
HealthSouth Corp.'s ousted chief executive, Richard Scrushy, must repay more than $47 million in bonuses he received while running the medical rehabilitation chain amid a huge fraud, despite being acquitted in the scheme, a judge ruled. Combined with as much as $265 million in refunds the company is seeking from the federal government for taxes it paid on overstated income during the fraud, the court-ordered repayment could help shore up the finances of HealthSouth. Scrushy plans to appeal.
BUSINESS
December 10, 2005 | From Reuters
The main witness in the fraud case against the founder and former chief executive of HealthSouth Corp. was sentenced Friday to five years in prison for his part in the $2.7-billion scheme. William Owens, onetime chief financial officer of the rehabilitation and health services chain, secretly recorded conversations for the FBI and testified for 11 days against his former boss, Richard Scrushy. A federal jury acquitted Scrushy of all charges in June.
BUSINESS
December 1, 2005 | From Associated Press
The judge in the government's civil lawsuit over the huge earnings overstatement at HealthSouth Corp. threw out fraud claims against fired Chief Executive Richard Scrushy, who was previously acquitted on criminal charges in the scheme. U.S. District Judge Inge P. Johnson said the two fraud counts contained in the suit -- the third version of the case filed by the Securities and Exchange Commission -- weren't specific enough.
BUSINESS
November 19, 2005 | From Associated Press
A former HealthSouth Corp. executive was convicted of conspiracy and lying to auditors for his role in a $2.7-billion fraud at the rehabilitation chain. Hannibal "Sonny" Crumpler was only the second person to stand trial in the fraud. The first, fired Chief Executive Richard Scrushy, was acquitted in June. Besides 15 years' imprisonment and more than $1 million in fines, prosecutors are asking a court to order Crumpler to turn over $2.
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