DB week 7 - David Dykstra Business Law I Mgmt 265A...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
David Dykstra Business Law I Mgmt 265A Healthsouth The board of directors from many corporations has lost its feeling of dependence on the investor. The investor has the power to raise the company from nothing or to bring it down to nothing. Healthsouth was no exception. Richard Scrushy is the founder and former CEO and Chairperson of the leading corporation for rehabilitation. HealthSouth Corporation grew exponentially by acquiring competition. Richard Scrushy was idolized as a hero for providing Bo physical therapy at the rehabilitation center located in Birmingham Alabama. Michael Martin and Malcolm E. McVay were the Chief Financial Officers for HealthSouth during the time of the scandal. HealthSouth was not directly charged with any criminal action. Instead the Administrative employees, and board committee were targeted for Liability. In the later part of 2002 Richard Scrushy sold $75 million dollars worth of Healthsouth stock, coincidently a few days before the company announced a loss in earnings that would lower the stock value. This announcement raised warning flags for the Securities and Exchange Commission also known as the SEC. The SEC made a public announcement that they pursue an
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

DB week 7 - David Dykstra Business Law I Mgmt 265A...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online