Scrushy Ordered to Pay $2.9 Billion

| June 18, 2009 

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A judge has ordered former HealthSouth C.E.O. Richard Scrushy to pay almost $2.9 billion for his role in the massive account fraud which nearly sunk the company. Shareholders sued Scrushy in civil court alleging he faked profits which triggered bonuses for him. Scrushy testified he knew nothing of the fraud and other executives in the company were responsible. Plaintiff lawyer John Haley led the legal team seeking damages from Scrushy. He spoke with WBHM’s Bradley George.

John Knapp is a professor of ethics and leadership at Samford University’s Brock School of Business. He tells WBHM’s Andrew Yeager this ruling is something of a vindication for prosecutors who failed to convict Scrushy on criminal charges four years ago.

Despite the ruling against Scrushy, the legal battles are not over. A lawyer for Scrushy says his client plans to appeal the case to the Alabama Supreme Court.

 

~ Bradley George and Andrew Yeager, June 18, 2009.

 

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