Alabama
9:30 am
Tue November 30, 2004

Judge Upholds Sarbanes-Oxley Act in Scrushy Case

Birmingham, AL – A federal judge in Birmingham rejected claims by former HealthSouth chief executive Richard Scrushy and upheld a new corporate fraud law that's aimed at top executives. It was the first court test of the constitutionality of the 2002 Sarbanes-Oxley Act. In her ruling, Federal Judge Karon Bowdre disagreed with Scrushy's argument that the act is unconstitutionally vague and should not be part of the indictment that accuses him of a massive fraud at HealthSouth. Bowdre said jurors--not a judge--should decide key questions that are raised in Scrushy's case. Scrushy spokesman Charlie Russell says the defense was not surprised by Bowdre's decision, and he says there will not be an appeal. Jury selection in Scrushy's trial is set to begin January 5.