Scrushy guilty, ordered to pay billions - WSFA.com Montgomery Alabama news.

Scrushy guilty, ordered to pay billions

File photo File photo

BIRMINGHAM, AL (WSFA) - Former HealthSouth CEO Richard Scrushy just suffered a legal setback to the tune of nearly $3 billion.

A Circuit Judge in Birmingham found Scrushy guilty of fraud and ordered the former CEO of HealthSouth to pay $2.8 billion to HealthSouth stockholders in an accounting fraud scheme at the company.

Jefferson County Circuit Judge Allwin E. Horn III issued the opinion Thursday morning in favor of derivative plaintiffs Wade C. Tucker and the Wendell H. Cook, Sr. Testamentary Trust, John P. Cook Trustee. The shareholders filed a civil suit claiming Scrushy was involved in the fraudulent actions. The company was nearly pushed into bankruptcy.

Scrushy was previously acquitted in a federal criminal case over the fraud and testified in the state civil suit that he knew nothing about the crime.

However, some evidence that wasn't allowed in the federal case made its way into the civil case including Scrushy's handwritten notes on documents linked to the fraud. The plaintiff's attorneys claim he made more than $266 million during the time of the accounting fraud.  

John W. Haley, lead counsel for the plaintiff's firm Hare, Wynn, Newell & Newton said, "The ruling in this historic case is a shot across the bow for those who engage in corporate greed and fraud in our country. In fact, this is much more than a shot across the bow... it is a full broadside and a tremendous victory for the shareholders of HealthSouth."

Because of the type of litigation, the $2.8 billion will have to go to the HealthSouth company and not individual stockholders.

Judge Horn wrote in his ruling that Scrushy "Knew of and participated in" the faked reports filed with regulators from 1996 through 2002. He also added that the company's founder "Consciously and willfully" violated his financial responsibilities as CEO.

Scrushy's attorney says he will appeal the multi-billion judgement.

Scrushy is currently serving seven years in prison in Beaumont, Texas on fraud and public corruption convictions from 2007.

  • Trending StoriesTrending StoriesMore>>

  • Colorado husband arrested in deaths of wife, 2 little girls

    Colorado husband arrested in deaths of wife, 2 little girls

    Thursday, August 16 2018 4:05 AM EDT2018-08-16 08:05:05 GMT
    Thursday, August 16 2018 5:47 PM EDT2018-08-16 21:47:03 GMT
    The man's pregnant wife, 34-year-old Shanann Watts, and their two daughters, 4-year-old Bella and 3-year-old Celeste were reported missing Monday.The man's pregnant wife, 34-year-old Shanann Watts, and their two daughters, 4-year-old Bella and 3-year-old Celeste were reported missing Monday.

    Authorities say the husband of a missing family in Colorado has been arrested in connection with the case.

    More >>

    Authorities say the husband of a missing family in Colorado has been arrested in connection with the case.

    More >>
  • FDA recalls thyroid medications

    FDA recalls thyroid medications

    Thursday, August 16 2018 5:25 PM EDT2018-08-16 21:25:14 GMT

    Their active ingredients weren’t sourced to proper FDA standards. 

    More >>

    Their active ingredients weren’t sourced to proper FDA standards. 

    More >>
  • Memorial created at Aretha Franklin's Memphis home upon her death

    Memorial created at Aretha Franklin's Memphis home upon her death

    Thursday, August 16 2018 5:45 PM EDT2018-08-16 21:45:05 GMT
    Aretha Franklin (left) Messages written on her childhood home (right) (Source: WMC Action News 5)Aretha Franklin (left) Messages written on her childhood home (right) (Source: WMC Action News 5)

    She sang about respect, and she earned it. Aretha Franklin was born in Memphis, Tennessee, on March 25, 1942.

    More >>

    She sang about respect, and she earned it. Aretha Franklin was born in Memphis, Tennessee, on March 25, 1942.

    More >>
  • NewsMore>>

  • US approves new generic competitor to EpiPen

    US approves new generic competitor to EpiPen

    Thursday, August 16 2018 3:47 PM EDT2018-08-16 19:47:00 GMT
    Thursday, August 16 2018 5:52 PM EDT2018-08-16 21:52:14 GMT
    The new generic version will be sold by Teva Pharmaceuticals. (Source: AP Photo/Rich Pedroncelli, File)The new generic version will be sold by Teva Pharmaceuticals. (Source: AP Photo/Rich Pedroncelli, File)

    US officials approves new generic competitor for emergency allergy medication EpiPen.

    More >>

    US officials approves new generic competitor for emergency allergy medication EpiPen.

    More >>
  • White House called toxins contamination 'PR nightmare'

    White House called toxins contamination 'PR nightmare'

    Monday, August 13 2018 1:38 AM EDT2018-08-13 05:38:00 GMT
    Thursday, August 16 2018 5:52 PM EDT2018-08-16 21:52:07 GMT
    Officials are demanding that the EPA act quickly to clean up local water systems testing positive for dangerous levels of PFAS. (Source: Raycom Media)Officials are demanding that the EPA act quickly to clean up local water systems testing positive for dangerous levels of PFAS. (Source: Raycom Media)

    Officials are demanding that the EPA act quickly to clean up local water systems testing positive for dangerous levels of chemicals used in nonstick cookware, fast-food wrappers and much more.

    More >>

    Officials are demanding that the EPA act quickly to clean up local water systems testing positive for dangerous levels of chemicals used in nonstick cookware, fast-food wrappers and much more.

    More >>
  • Rain chances are on the rise

    Rain chances are on the rise

    Thursday, August 16 2018 5:47 PM EDT2018-08-16 21:47:56 GMT
    (Source: WSFA 12 News)(Source: WSFA 12 News)

    After a hot and generally dry Wednesday, we're shaving off a few degrees as we ramp up afternoon rain chances.

    More >>

    After a hot and generally dry Wednesday, we're shaving off a few degrees as we ramp up afternoon rain chances.

    More >>
Powered by Frankly