BIRMINGHAM, Ala. (CN) – Testimony for the plaintiffs wrapped up Friday in the first week of Richard Scrushy’s civil trial filed by HealthSouth shareholders, who seek $2.6 billion in damages. Shareholders claim Scrushy abused corporate perks, falsified earnings and spent company money for personal reasons, including breast implants for a member of an all-woman group he backed.
Witnesses last week included several former employees and chief financial officers of HealthSouth, who claim Scrushy knew of the fraud that put the physical therapy company on the verge of financial ruin.
The bench trial is being heard in Jefferson County Circuit Court by Judge Allwin Horn. Scrushy, who is serving a 7-year prison term in Texas after being convicted of bribing former Alabama Gov. Don Siegelman, arrived in Birmingham last week and is being held at the Shelby County Jail. He is expected to testify this week.