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Heads up: Richard Scrushy ordered to pay HealthSouth $2.87 billion

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Richard Scrushy, HealthSouth founderThe last, last shoe has dropped. HealthSouth founder Richard Scrushy must pay $2.87 billion as a result of a civil suit filed in 2002. Circuit Judge Allwin Horn ruled Thursday in the bench trial, writing, “Scrushy knew about the fraud and was an active participant in the fraud and consciously and willfully breached his fiduciary duties as CEO. Scrushy was the CEO of the fraud.”

Scrushy, who founded the physical rehabilitation company in 1984, was convicted in 2006 for bribery, conspiracy and mail fraud. He’s serving a 7-year sentence in a Texas federal prison.

Shareholders are likely to see very little of the fine, after the lawyers receive their cut.

Scrushy has the option to appeal the decision to the Alabama Supreme Court.
Birmingham News: HealthSouth founder Richard Scrushy ordered to pay company $2.87 billion

4 Yips for “Heads up: Richard Scrushy ordered to pay HealthSouth $2.87 billion”

  1. Kevin
    Sunday, June 21, 2009, 1:32 am
    1

    Scrushy should, like other fiscal evil-doers (Abramoff, Madoff… rippedoff), have his assets liquidated to pay the judgment against him. Big estate? Tough. Big jet? Tough. Big boat. Sorry, Charlie.

    However, I must add this: When HealthSouth stock was trading at 0.11 (cents) per share, I bought. I held. I sold. I made money.

  2. Wade
    Sunday, June 21, 2009, 6:55 am
    2

    So many associated with the HealthSouth fraud got away with very little jail time (if any) and all their assets. It’s great Scrushy was caught, but not so great that the rest of his gang got away scot-free.

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