Former HealthSouth CEO on the hook for $2.9 billion

Updated

It is one thing to lose a court case and face a fine. It is another for the judge to put you on the hook for $2.9 billion.

Former HealthSouth CEO Richard Scrushy beat a federal charge of fraud could not do the same in a civil case. A judge decided that Scrushy knew the company was cooking the books and making up numbers to meet Wall Street estimates. The case was heard in state court. According to the AP, "The Alabama suit accused Scrushy of unethical dealings with the company while it was going broke and complicity in $2.6 billion in fraudulent reports it filed with regulators."

Advertisement