Corporate Responsibility

By Gary Ashwill / June 9, 2005

The SEC lawsuit against HealthSouth for accounting fraud has been settled, the company agreeing to pay the government $100 million, less than a sixth of its annual cash flow. The Birmingham News points out that both Time Warner and Qwest paid heftier amounts to the SEC last year (though Time Warner is obviously a much larger corporation than HealthSouth), and also that in all three settlements, the companies did not have to admit to any wrongdoing. The HealthSouth settlement does NOT affect the civil and criminal cases against company founder, former CEO, and keyboardist Richard Scrushy, which still grind on: the jury is currently deadlocked on all 36 criminal charges.

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