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Richard Scrushy

Shareholders of HealthSouth found some vindication last week, when an Alabama judge ordered Richard Scrushy, the clinic chain’s former CEO, to pay them $2.9 billion, said Bob Johnson in the Associated Press. Circuit Judge Allwin Horn ruled that Scrushy had helped falsify the earnings of Birmingham-based HealthSouth, “to make it appear the company was meeting Wall Street forecasts.”

Four years ago, Scrushy was acquitted of criminal charges related to the HealthSouth fraud, said Jack Healy in The New York Times. But Judge Horn disagreed, calling Scrushy “the CEO of the fraud.” Scrushy says other claims will eat up what’s left of his remaining $75 million, so he won’t be able to pay shareholders. But the ruling completes a stunning fall for a man who once wielded vast power in Alabama. He’s currently serving a seven-year sentence on an unrelated charge of bribing former Alabama Gov. Don Siegelman.

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