HealthSouth’s Scrushy Owes Loan, Judge Says

HealthSouth Corp.’s fired chief executive, Richard Scrushy, must repay the company for a $25.2-million loan he settled with HealthSouth stock that later fell in value, a Delaware judge said.

Scrushy, who was indicted in Alabama this month on federal charges of conspiring to inflate earnings, was accused last year in a Delaware Chancery Court lawsuit of paying off the loan with stock he knew would plummet when financial problems at HealthSouth were disclosed.

Scrushy’s lawyers said the decision would be appealed.