May 20, 2013

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Reporter: Associated Press

HealthSouth

A judge in Delaware set an Aug. 19 trial date in a lawsuit filed by fired HealthSouth CEO Richard Scrushy. He's seeking renewed access to the medical services company he helped found.

Scrushy contends he has been wrongly denied financial and operational information from Birmingham-based HealthSouth. The rehabilitation firm was incorporated in Delaware.

HealthSouth directors fired Scrushy as CEO after the government filed suit in March and accused him of directing a massive accounting fraud that allegedly overstated earnings by more than $2 billion.

Scrushy has refused the company's request that he resign as a director.

Spokesman Andy Brimmer said HealthSouth believes the board's actions are appropriate and consistent with Delaware law.

Eleven former HealthSouth executives have pleaded guilty to fraud charges. Scrushy has not been charged with a crime but his attorneys have said they expect him to be indicted.


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