HealthSouth’s Scrushy Sues to Gain Access

Ousted HealthSouth Corp. Chief Executive Richard Scrushy accused company directors in a lawsuit of wrongly excluding him from board meetings and not providing him with financial information about the company.

The suit against board members contends that Scrushy, a HealthSouth director, cannot fulfill his duties because the board conducts business through special committees and that Scrushy is not on any of them. It was filed in Delaware, where Birmingham, Ala.-based HealthSouth is incorporated.

A spokesman for HealthSouth said the board excluded Scrushy from the committee to avoid a potential conflict of interest after the Securities and Exchange Commission filed suit accusing Scrushy of directing a conspiracy to overstate HealthSouth’s earnings.

From Associated Press