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January 10, 2006
Scrushy Ordered to Repay $47.8M in Bonuses

A judge in Alabama has ordered Richard Scrushy, former chief executive of HealthSouth Corp., to repay $47.8 million in bonuses he received from 1997 to 2002, the Associated Press reports.

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Jefferson County Circuit Judge Allwin E. Horn III said the bonuses were undeserved because they were based on erroneous financial reports.

"Scrushy was unjustly enriched by these payments to the detriment of HealthSouth and to allow Scrushy to retain the benefit of these payments would be unconscionable," Horn writes.

Scrushy's attorney Kile Turner says Scrushy will appeal.

"We believe the ruling is in error in that no state or federal court ... has ever made a finding on the basis cited in this case," Turner says in a statement.

Last year, a federal jury acquitted Scrushy on all charges. In his defense, Scrushy said subordinates orchestrated a scheme to inflate profits without his knowledge, the news service reports.


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