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Ex HealthSouth CEO Ordered to Pay $2.8 Billion to Shareholders in Civil Suit

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Richard Scrushy, former HealthSouth CEO, will finally have to pay the price for his primary role in the company’s notorious accounting and fraud scandal. Although Scrushy was acquitted back in 2005 on criminal charges, an Alabama court judge ordered Scrushy to pay shareholders $2.8 billion, supporting the shareholders’ claims that Scrushy used the company’s money for his personal expenses.

Scrushy is currently serving a seven-year prison term for a bribery case and was sued by the company’s shareholders for nearly sending the healthcare company into bankruptcy. The company stated that they are satisfied with the outcome of the civil suit, and that the money represents a 40% recovery of their net losses.

HealthSouth continues to operate in 26 states and in Puerto Rico as the largest provider of inpatient rehabilitative health-care services.

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  1. Steve Lombardi says:
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    This is what the U.S. Chamber of Commerce should be focusing on. This is the kind of tort reforms every working man and woman needs to see happen.