Scrushy Still Excluded from Mediation Conference in HealthSouth Securities - WSFA.com Montgomery Alabama news.

Scrushy Still Excluded from Mediation Conference in HealthSouth Securities

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FOR THE NORTHERN DISTRICT OF ALABAMA

SOUTHERN DIVISION

In re HEALTHSOUTH CORPORATION )

SECURITIES LITIGATION, ) Consolidated Case No.

) CV-03-BE-1500-S

This Document Relates to: All Actions )

)

__________________________________ )

)

In re HEALTHSHOUTH CORPORATION )

INSURANCE LITIGATION, ) Consolidated File No.

) CV-03-BE-1139-S

This Document Relates to: All Actions )

)

__________________________________ )

)

In re HEALTHSOUTH CORPORATION )

DERIVATIVE LITIGATION ) Consolidated File No.

) CV-03-BE-2565-S

This Document Relates to: All Actions )

DEFENDANT SCRUSHY'S MOTION FOR INCLUSION IN MEDIATION WITH ALL

PARTIES CONSIDERING PARTIAL SETTLEMENT

COMES NOW Defendant Richard M. Scrushy, by and through undersigned counsel, and

files this "Motion for Inclusion in Mediation with All Parties Considering Partial Settlement." In

support of this motions Defendants submits to the Court as follows:

In an order dated August 30, 2006, (Document 507 in case 03-cv-1500) this Court ordered

all parties, excluding Richard Scrushy, attend a status conference in Birmingham on Friday,

September 15, 2006, to advise the Court as to the status of the mediation effort. Counsel was

subsequently notified by Judge Horn that we would be invited to this mediation. We were later

informed by Mediator Eric Green that we were not invited and should not attend.

We move the Court to include Richard Scrushy in the discussions and thereby remove a

substantial impediment to the settlement of these actions. We have been working through Eric

FILED

2006 Sep-12 PM 07:03

U.S. DISTRICT COURT

N.D. OF ALABAMA

Case 2:03-cv-01500-KOB Document 523 Filed 09/12/2006 Page 1 of 4

Green to advance the negotiations regarding the actions before this Court. However, it has become

apparent to us that, notwithstanding Mr. Green's substantial and commendable efforts, Mr.

Scrushy's exclusion from these negotiations has resulted in the misimpression that Mr. Scrushy is

reluctant to resolve certain matters, has resulted in misinformation or a lack of communication

regarding significant points to Scrushy and other parties and otherwise has worked to Mr. Scrushy's

detriment on numerous fronts. Richard Scrushy has from the very beginning wished to participate in

these proceedings, but has been excluded. Mr. Scrushy stands ready to negotiate all matters relevant

to the partial settlement proposed to this Court. We therefore move this Court to expand the August

30, 2006 Order to include Richard Scrushy in the status conference of September 15, 2006.ORDER Setting Status Conference: Healthsouth, the derivative plas, the nonpleading director and officer dfts (excluding Richard Scrushy), and the Insurance Carriers shall continue and conclude mediation prior to 9/15/06, as directed by the mediator. The plas, Healthsouth, the derivative plas, the nonpleading directors and officers (excluding Richard Scrushy) and the Insurance Carriers are directed to appear before this court on 9/15/2006 at 08:30 AM in Courtroom 3 of the Robert Vance Federal Bldg if parties have not finalized settlement papers. Signed by Judge Karon O Bowdre on 8/30/06. (KLL

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