Meet Mr. Richard Scrushy, the former CEO of HealthSouth, currently serving a seven-year federal stretch in Texas on a bribery conviction—he bribed former Alabama Gov. Don Siegelman—but that isn’t what were here to talk about. No, Mr. Scrushy has been brought to the Jefferson County Circuit Court in Alabama—HealthSouth is headquartered in Alabama—to face a civil suit brought by the company’s investors and stemming from the rather self-serving management style he adopted during his time as CEO. According to a story on BhamWeekly.com:
A derivatives action on behalf of HealthSouth investors is seeking damages from the former CEO. The lawsuit is a civil case in state court. Scrushy risks paying damages if he loses, but he will not face further time in prison.
Why are the stockholders suing Mr. Scrushy? They are suing because when he was the CEO of this publicly-traded company he used the firm as an extension of his own wallet. Moreover, as a man o... [Read Full Article]