Birmingham, AL – Jurors acquitted HealthSouth founder and fired C-E-O Richard Scrushy on all charges Tuesday in a multi-billion dollar earnings overstatement at the medical services company. Scrushy had been charged with fraud, false corporate reporting and making false statements to regulators. He was the first C-E-O charged under the federal Sarbanes-Oxley corporate reporting law.
The defense blamed the massive fraud on Scrushy aides including all five finance chiefs who served under him at HealthSouth. Fifteen former HealthSouth executives have pleaded guilty since 2003.
Birmingham, AL – HealthSouth Corporation has spent more than 250 million dollars restating its finances during the final years of a huge financial fraud at the company. HealthSouth has issued a 170 page reports detailing actual revenues in 2000 and 2001. They were seven-point-one billion dollars. That's about one-point-five billion dollars less than previously reported. HealthSouth also says it plans to file an annual report for 2004 by the end of this year. That would bring the company up-to-date on all of its regulatory filings.