Ex-HealthSouth CEO Scrushy Wins Reversal on Two Counts, May Be Resentenced

Source: Bloomberg

Richard Scrushy, the former chief executive officer of HealthSouth Corp. (HLS), won the reversal of two convictions from his 2006 criminal trial, while the U.S. appeals court affirmed four other counts.

The court issued its decision today in Atlanta after reviewing the case for a second time. The U.S. Supreme Court ordered the re-examination last year after narrowing the scope of a federal law criminalizing the deprivation of citizens’ and shareholders’ right to the honest services of public and corporate officers.

The three-judge panel upheld the honest-services convictions of Scrushy and former Alabama Governor Don Siegelman. It overturned convictions on two counts relating to the former CEO’s alleged self-dealing with the ex-governor’s help.

“This was a step in the right direction,” Scrushy’s lawyer, Bruce Rogow, said in a telephone interview. Rogow said he will ask the Supreme Court to examine today’s decision also. “We think there can be a giant step if the Supreme Court accepts review.”

Read more: http://www.bloomberg.com/news/2011-05-10/former-healthsouth-chief-richard-scrushy-has-counts-in-bribery-case-tossed.html