Richard Scrushy has sued HealthSouth Corp., Birmingham, Ala., to recoup legal fees related to allegations that the company overstated earnings by $2.5 billion while Scrushy was at its helm. The lawsuit asserts that a 1994 indemnity agreement between Scrushy and HealthSouth requires the company to provide "coverage for any lawsuits that might be brought against him in his business capacity," the Associated Press reported. The lawsuit was filed last week in Delaware Superior Court, Wilmington, and the sum requested was not available. Scrushy contends the indemnity agreement is applicable for 10 years after he ceases employment at HealthSouth, according to the AP. The Securities and Exchange Commission has named HealthSouth and Scrushy in a civil complaint alleging massive accounting fraud at the company. The Justice Department has filed criminal charges against 11 individuals, but not against Scrushy. At deadline, HealthSouth officials could not be reached for comment. -- by Julie Piotrowski
Scrushy goes after HealthSouth for legal fees
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