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BREAKING NEWS ~ Scrushy acquitted on all charges in corporate fraud trial

[JURIST] A jury has found former HealthSouth CEO Richard Scrushy [JURIST news archive] not guilty on charges of wire and mail fraud, money laundering, conspiracy, and violations of the Sarbanes-Oxley Act [summary]. Scrushy was the first CEO to be charged with violating the act. The jury, originally given the case on May 19, was deadlocked for weeks [JURIST report] and had to start deliberating again on June 22 when a juror was replaced [JURIST report] for health reasons. The charges stemmed from a scheme to overstate earnings and inflate the company's stock price between 1996 and 2002. Prosecutors claimed Scrushy was in charge of the scam, while Scrushy's defense blamed aides, 15 of whom pleaded guilty [AP report]. CNN has more.

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Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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