Significant events in the development of HealthSouth Corp. and the fraud case against founder and former CEO Richard Scrushy:
— 1984: Scrushy and a small group of investors form HealthSouth.
— 1986: HealthSouth goes public.
— 1996: After years of quick growth with Scrushy as CEO, HealthSouth operates in all 50 states and eventually bills itself as the nation’s largest provider of diagnostic imaging, outpatient surgery and rehabilitation services. Fraud begins around mid-year.
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— October 2002: Signs of trouble emerge when Scrushy temporarily steps down as CEO and HealthSouth lowers earnings estimates by $175 million, blaming a change in Medicare reimbursements.
— March 2003: Securities and Exchange Commission files a civil suit against HealthSouth and Scrushy alleging massive accounting fraud. First of 15 former executives pleads guilty in fraud; Scrushy is fired by HealthSouth.
— November 2003: Scrushy charged criminally in HealthSouth fraud, pleads innocent to 85-count indictment alleging fraud, conspiracy, money laundering and violations of Sarbanes-Oxley corporate reporting law.
— September 2004: New indictment cuts number of counts to 58, adds perjury and obstruction of justice charges.
— Jan. 25: Testimony begins with jury of 12 members, six alternates.
— April 20: Prosecution rests.
— May 11: Defense rests without Scrushy taking stand.
— May 19: Jury deliberations begin.
— June 22: Ill juror replaced, deliberations start again from scratch.
— June 28: Scrushy acquitted on all counts.