Alabama Supreme Court Rejects Appeal of $2.9 Billion Judgment in HealthSouth Fraud

The Alabama Supreme Court has rejected an appeal by former HealthSouth Corporation CEO Richard Scrushy, who sought reversal of a $2.9 billion judgment obtained in a shareholder derivative suit brought on HealthSouth’s behalf. After an eleven day non-jury trial, Judge Allwin E. Horn, III, an Alabama Circuit Court judge, previously found that Mr. Scrushy knew and participated in a massive accounting fraud, labeling Mr. Scrushy as “the CEO of the fraud.” Judge Horn found that Mr. Scrushy consciously and willfully breached his fiduciary duties as HealthSouth’s CEO. The Schubert firm is co-lead counsel in the case.

» Read Judge Horn’s entire opinion.
» Read the Alabama Supreme Court opinion.

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