Jury Acquits Scrushy; Federal Prosecutors Receive a Huge Setback in Alabama Verdict

The ColumbianJune 30, 2005

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BIRMINGHAM, Ala. -- HealthSouth Corp. founder Richard Scrushy walked away a free man Tuesday after a jury cleared him of all charges in a stunning setback for federal prosecutors who sought to add his name to a list of CEOs convicted of fraud.

Scrushy was the first of the nation's high-profile chief executives to escape conviction since a wave of corporate scandals and indictments followed Enron Corp.'s collapse almost four years ago.

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Jury Acquits Scrushy; Federal Prosecutors Receive a Huge Setback in Alabama Verdict

With all five former CFOs pleading guilty and testifying that Scrushy led a scheme to inflate earnings by $2.7 billion at the rehabilitation and medical services chain, some v...

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