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Alabama Judge Grants Motion to Freeze Scrushy’s Assets
Yesterday, Jefferson County Circuit Judge Allwin E. Horn granted the HealthSouth shareholders’ motion filed Friday (discussed here) to freeze the assets of HealthSouth Corp. founder Richard Scrushy. On June 18, the shareholders won a nearly $2.9 billion judgment against Scrushy related to the accounting fraud at the company. The AP reports that the judge’s rulng [...]
Step 1: Obtain $2.8 Billion Judgment; Step 2: Seek Asset Freeze
On Friday, attorneys for HealthSouth shareholders asked Alabama Circuit Judge Allwin E. Horn to freeze the assets of former HealthSouth CEO Richard Scrushy, against whom they obtained a massive nearly $2.9 billion judgment last week. One of the attorneys acknowledged that there was no expectation of getting the full judgment from Scrushy, but said that [...]
$2,800,000,000 Judgment Against Richard Scrushy in Alabama Case
Alabama Circuit Judge Allwin E. Horn ruled today that former HealthSouth CEO Richard Scrushy must pay about $2.8 billion to shareholders who sued over accounting fraud at the company. Read that again: $2,800,000,000. The AP reports that: The Alabama suit accused Mr. Scrushy of unethical dealings while the company was going broke and complicity in [...]
Civil Case Against Former HealthSouth CEO Scrushy Awaits Decision by Judge
The civil case against former HealthSouth CEO Richard Scrushy is now in the hands of the court, after both sides finished post-trial summaries Tuesday. Jefferson County Circuit Judge Allwin Horn will decide the case, as a jury was waived by consent of the parties. As previously discussed here, shareholders suing on behalf of HealthSouth allege [...]
Scrushy Claims “No Knowledge of any Financial Fraud” at HealthSouth
As previously discussed here, the civil trial against Richard Scrushy began in Alabama last week. Testifying today for the first time in his own defense, Scrushy said today he had “no knowledge of any financial fraud” at HealthSouth Corp., and that he was misled by other executives. The Birmingham News reports that Scrushy testified that [...]
HealthSouth Seeks to Recover More than $100 Million from Founder Richard Scrushy
In Birmingham, Alabama, a civil trial began today against HealthSouth Corp. founder Richard Scrushy. In the case brought by shareholders suing on behalf of HealthSouth, plaintiffs allege that Scrushy owes the company more than $100 million for profiting on insider trading and misusing assets such as the corporate jet, the Birmingham News reports. “He was [...]
Coughlin Stoia Seeks to Stop Settlements in Delaware Derivative Actions
The law firm Coughlin Stoia Geller Rudman & Robbins is attempting to halt settlement discussions in two Delaware derivative cases involving allegations of stock option backdating because it argues the discussions exclude Coughlin Stoia and undercut its federal cases against the same defendants. Attorneys for the two defendants, Maxim Integrated Products Inc. and Affiliated Computer [...]
Proposed Settlement of McAfee Derivative Action Provides $30 Million Benefit to Company, $13.5 Million in Attorney’s Fees
Law firm Coughlin Stoia filed a Motion for Preliminary Approval of Derivative Settlement in In Re: McAfee, Inc. Derivative Litigation yesterday. The motion states that “with approximately $30 milion in financial benefits to the Company, this Settlement represents an excellent result. This Settlement is the result of extensive, arm’s-length negotiations between the parties overseen by [...]
Greenberg, Three Others from AIG, Settle Derivative Action for $115 Million
On Thursday, former AIG Chief Maurice “Hank” Greenberg and three other AIG executives settled a derivative action pending in Delaware for $115 million. As reported by the WSJ, the lawsuit involved the relationship AIG had with an insurance firm that Mr. Greenberg heads, C.V. Starr & Co., which underwrote some of AIG’s business and was [...]