Friday, July 1, 2005
The HealthSouth saga could rival the finest Gothic novels as a Wall Street Journal article (here) states that Richard Scrushy plans to contact large shareholders of the company he founded about reclaiming his position as CEO. Whether or not it is posturing, in the afterglow of the acquittal in the criminal trial, he may feel emboldened to take back what he rightfully believes belongs to him -- regardless of the fact that it is a publicly-traded company and he still has an SEC securities fraud action and numerous civil lawsuits hanging over his head.
As the article also notes, this may be posturing by Scrushy to ensure that his legal bills, estimated at $25 million from the criminal trial and likely to be significant if the SEC case proceeds, are paid by the company, and that he receives the severance benefits under the employment agreement the board of directors nullified in 2003 when he was terminated (see earlier post here about continuing litigation). If Scrushy does return to an executive position at HealthSouth, would you want to be CFO of the company? They have quite a track record with him around. (ph)