Ruling in Scrushy settlement case - WSFA.com Montgomery Alabama news.

Ruling in Scrushy settlement case

BIRMINGHAM, Ala. (AP) - A federal appeals court has ruled against former HealthSouth CEO Richard Scrushy's challenge to a $445 million settlement in 2006 between the health rehabilitation company and some of its investors.

A three-judge panel of the 11th U.S. Circuit Court of Appeals on Wednesday denied Scrushy's claim that the settlement should have left open the possibility of HealthSouth paying his legal bills or reimbusing him for anything he is ordered to pay investors.

The case was among several stemming from a huge accounting fraud at HealthSouth.

Scrushy's attorney, David Russell, said a decision has not been made on whether to appeal the decision to the full 11th Circuit or to the U.S. Supreme Court.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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