Shareholders of HealthSouth Corp., Birmingham, Ala., lost far less in an alleged multiyear accounting scam at the company than federal prosecutors have estimated, according to a federal judge handling the sentencing of several former HealthSouth executives who have pleaded guilty in the case. U.S. District Court Judge Inge Johnson in Birmingham said shareholders lost an estimated $66 million because of the scam instead of $1.7 billion to $2.8 billion as suggested by federal officials. At deadline, federal prosecutors could not be reached for comment. Earlier this month, Johnson postponed sentencing the former executives, saying she needed more time to assess the loss to shareholders. A sentencing hearing is set for Dec. 10. Johnson previously rejected requests from the executives' attorneys and the U.S. Justice Department to postpone sentencing until after the trial of former HealthSouth CEO Richard Scrushy, who recently was indicted on 85 counts of conspiracy, fraud and money laundering. -- by Julie Piotrowski
Judge: Cost of HealthSouth fraud overstated
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