HealthSouth Corp. says it has fired Richard Scrushy, the company's CEO and chairman, retroactive to March 19, when he was put on administrative leave.
In a release today, the Birmingham, Ala.-based company says it informed Scrushy of the firing in a letter dated Sunday.
The company says the letter also informed Scrushy that under new federal regulations, he will have to forfeit bonuses or other incentive-based or equity-based compensation and certain profits from the sale of HealthSouth securities if the company is forced to restate its financial results.
The release also states that HealthSouth will replace Ernst & Young as its auditors, but the company has not yet named a replacement.
The Securities and Exchange Commission has accused the company and Scrushy of inflating earnings by $1.4 billion since 1999 and overstating assets by $800 million.