Richard Scrushy sued HealthSouth Corp., Birmingham, Ala., for breach of contract, seeking $70 million from the rehabilitation company he founded, which fired him as chief executive officer in March 2003. The lawsuit in Jefferson County (Ala.) Circuit Court asks for accrued back pay, bonuses, vested stock options and legal expenses. According to the suit, Scrushy's contract with the company stated that he could be fired only if convicted in court, with no appeal options, of committing a felony or fraud that had a material effect on the company. HealthSouth has said the contract was null and void when Scrushy was fired. The company repeated the assertion but said it does not comment on litigation. A jury acquitted Scrushy in June of criminal charges related to multibillion accounting fraud at HealthSouth. He still faces a Securities Exchange Commission suit, scheduled to begin trial in April 2007, and he's been indicted for allegedly bribing a former Alabama governor. Scrushy resisted pressure to resign from HealthSouth's board for nearly three years, finally doing so Dec. 5. -- by Joseph Mantone
Scrushy sues HealthSouth, seeking $70 million
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