Timeline of case against former HealthSouth CEO Scrushy

Significant events in the development of HealthSouth Corp. and the fraud case against founder and former CEO Richard Scrushy:

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1984:

Scrushy and a small group of investors form HealthSouth.

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1986:

HealthSouth goes public.

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1996:

After years of quick growth with Scrushy as C-E-O, HealthSouth operates in all 50 states and eventually bills itself as the nation's largest provider of diagnostic imaging, outpatient surgery and rehabilitation services. Fraud begins around mid-year.

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October 2002:

Signs of trouble emerge when Scrushy temporarily steps down as CEO and HealthSouth lowers earnings estimates by 175 (m) million dollars, blaming a change in Medicare reimbursements.

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March 2003:

Securities and Exchange Commission files a civil suit against HealthSouth and Scrushy alleging massive accounting fraud. First of 15 former executives pleads guilty in fraud; Scrushy is fired by HealthSouth.

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November 2003:

Scrushy charged criminally in HealthSouth fraud, pleads innocent to 85-count indictment alleging fraud, conspiracy, money laundering and violations of Sarbanes-Oxley corporate reporting law.

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September 2004:

New indictment cuts number of counts to 58, adds perjury and obstruction of justice charges.

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January 25th:

Testimony begins with jury of 12 members, six alternates.

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April 20th:

Prosecution rests.

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May 11th:

Defense rests without Scrushy taking stand.

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May 19th:

Jury deliberations begin.

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June 22nd:

Ill juror replaced, deliberations start again from scratch.

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June 28th:

Scrushy acquitted on all counts.

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