A judge sent the Securities and Exchange Commission's lawsuit against former HealthSouth Chief Executive Officer Richard Scrushy to mediation, and ordered mediation to begin by Nov. 4, unless the parties seek an extension.
The SEC requested a jury trial in an amended complaint filed Sept. 7 in U.S. District Court, Birmingham, Ala. The agency is seeking fines and penalties totaling $785 million for Scrushy's alleged involvement in multibillion-dollar accounting fraud at the company.
Separately, Scrushy held a news conference at which he accused HealthSouth of breaking the law by barring him from board meetings since his March 2003 ouster as CEO.
Although HealthSouth fired Scrushy, investors cannot remove him from the board until the company is filing quarterly reports on time and holds an annual meeting. It has done neither during its recovery from the fraud.
HealthSouth reiterated its previous position that Scrushy will not have a role at the company. In June, a jury acquitted him of criminal charges related to the fraud.