With guys like Dick Scrushy, the story never ends--it just drags on and on. The latest chapter in the Scrushy saga came this week, when he testified for the first time about the massive fraud that took place during his tenure as CEO.
Scrushy, who testified as part of a $2.6 billion lawsuit brought against him by HealthSouth shareholders, told the court that he never knew about the accounting fraud that almost brought down the company, despite its going on for a full six years. In fact, he said he knew nothing of it until 2003. That's when the FBI raided the premises and the government sued the company. (Kind of hard to miss that.)
Scrushy claimed he wasn't aware of some major financial issues within the company, including a $350 million budgeting error. Plaintiffs' attorneys, meanwhile, said Scrushy was a details man, deeply involved in financial issues, who had to have known what was going on.
To learn more about the case:
- read this Modern Healthcare piece
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