Richard Scrushy has sued HealthSouth Corp., Birmingham, Ala., accusing the company he founded and led until recently of violating his rights as a director. HealthSouth voided Scrushy's employment contract and took away his title of chairman in March but acknowledged at the time that it could not remove him as a director. Scrushy filed his suit in chancery court in Delaware, where HealthSouth is incorporated. Scrushy's lawsuit, according to a news release from one of his lawyers, accuses the company of illegally excluding him from board meetings and withholding company information that Scrushy is entitled to as a director. In a written statement, HealthSouth spokesman Andy Brimmer said, "In light of the ongoing government investigation into Mr. Scrushy and the alleged (accounting) fraud at HealthSouth, it would be irresponsible for the board to have allowed Mr. Scrushy to participate in deliberations regarding matters in which he is potentially conflicted." Brimmer said Scrushy can be removed from the board of directors only by a shareholder vote, which would likely come at the company's yet-to-be-scheduled annual meeting. -- by Vince Galloro
Scrushy sues HealthSouth over rights as a director
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