Court rules against HealthSouth in auditor dispute

Recent Cases

The Alabama Supreme Court ruled against Birmingham-based HealthSouth Corp. on Friday in a legal dispute linked to the accounting fraud that rocked the rehabilitation company more than a decade ago.

The justices rejected an appeal filed by HealthSouth in a legal fight involving its one-time auditing company, Ernst & Young.

Shareholders filed a complaint on behalf of HealthSouth blaming Ernst & Young for failing to detect the $2.6 billion accounting scam that occurred under former CEO Richard Scrushy, who was acquitted of criminal charges in 2005. A civil court later held him responsible for the swindle.

An arbitration panel ruled against HealthSouth in a complaint aimed at making Ernst & Young share responsibility for the fraud, and HealthSouth appealed to Jefferson County Circuit Court. That court sided with the auditor, and HealthSouth appealed again.

The Supreme Court, in a decision written by Justice James Main, upheld the ruling against HealthSouth. The justices said there was no evidence the arbitration decision against HealthSouth was fundamentally unfair or that the panel engaged in any misconduct.

Evidence showed HealthSouth inflated its earnings by some $2.6 billion from the late 1990s through the early 2000s, when the scheme was uncovered. Fifteen HealthSouth employees pleaded guilty and jurors convicted one other.

Scrushy blamed everything on underlings but later served time in federal prison after being convicted in a bribery scheme involving former Gov. Don Siegelman, who remains in prison in Oakdale, La.

Scrushy, who maintains his innocence to all charges, now lives in Texas and sometimes lectures about corporate fraud.

Related listings

  • Toal seeking millions to safeguard SC court info

    Toal seeking millions to safeguard SC court info

    Recent Cases 03/14/2014

    The head of South Carolina's judicial system says she needs more money to safeguard digital information for courts around the state. Chief Justice Jean Toal told a Senate panel Wednesday that it would take about $5.5 million to set up a site at Clems...

  • French court blocks secret recordings of Sarkozy

    French court blocks secret recordings of Sarkozy

    Recent Cases 03/14/2014

    A French court has ordered an ex-aide of Nicolas Sarkozy to pay 10,000 euros ($14,000) in damages and costs to the former French president over secret recordings that were published in an online journal, and instructed the publication to pull down th...

  • Two men found guilty for selling U.S. company’s technology

    Two men found guilty for selling U.S. company’s technology

    Recent Cases 03/07/2014

    A federal jury found two men guilty Wednesday of economic espionage involving the theft and sale of a U.S. company’s technology to a competitor controlled by the Chinese government. The jury returned the verdicts against Robert Maegerle and Walter Li...

Victorville CA DUI Lawyers - Drunk Driving Defense Attorney

The outcome of a Victorville CA DUI defense will have a long-term effect on anyone’s life, making the decision to receive legal representation an easy one. The fact is, most people accused of a DUI are first offenders with no criminal background. Whether this is your first run in with the law or you have had previous convictions, you are in need of a DUI defense attorney.

If you fail a sobriety test or have a blood alcohol level above 0.8%, you are considered to be driving under the influence in which you will be arrested. During this time you will be read your Miranda rights and it is crucial to exercise your right to remain silent. As they say, “anything you say can and will be held against you in court.” The courtroom takes no mercy on drunk drivers and any statement you make during your arrest will only damage your case.

Business News

Surry County Criminal Defense Lawyers. At DiRusso & DiRusso, we have the legal knowledge and experience to protect you. >> read
Canton, MI Criminal Law Attorney Rita White is a metro Detroit area attorney with a focus on criminal defense. >> read