Lawyers are awaiting a judge's ruling on motions in a lawsuit filed by the Securities and Exchange Commission against Richard Scrushy, former chief executive officer of Birmingham, Ala.-based HealthSouth Corp. U.S. District Judge Inge Johnson asked both sides in the case to show why the lawsuit shouldn't be dismissed in the wake of Scrushy's acquittal in late June on 36 counts related to massive accounting fraud at the company. Last week, the SEC filed its second show-cause motion in response to one filed by Scrushy's lawyers that said the lawsuit has no merit because Scrushy was not involved in the fraud. The SEC motion disputed Scrushy's arguments and criticized decisions made by U.S. District Judge Karon Bowdre, who presided in the criminal case against Scrushy. -- by Joseph Mantone
Ruling awaited in SEC suit against Scrushy
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