Healthsouth’s Scrushy loses appeal of $2.9 Billion Judgment

The Alabama Supreme Court, applying Delaware corporate law, has rejected ex- HealthSouth CEO Richard Scrushy’s appeal of a $2.9 billion judgment that he owes to the shareholders of the health care services chain for orchestrating a massive accounting fraud. Scrushy, who is serving seven years in federal prison in an unrelated case for bribing former Alabama Gov. Don Siegelman to get a seat on an influential state health care panel, unsuccessfully argued that he is not personally liable for the fraud perpetrated by his lieutenants.  Read More

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