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"Former HealthSouth Corp. chief executive officer Richard Scrushy has been ordered by a judge to repay his former company more than $47.8 million in bonuses, according to published reports. ... Judge Allwin E. Horn III of Jefferson County Circuit Court in Birmingham, who made the ruling as part of a summary judgment in a shareholder lawsuit, determined that Scrushy is not entitled to the payments whether or not he participated in the fraud or knew about the scheme."

"While the company initially reported profits during the period, Horn wrote, HealthSouth really lost money, making Scrushy and other executives ineligible for any bonuses."

"'Knowledge is immaterial under the law of unjust enrichment,' the judge reportedly wrote. 'Scrushy was unjustly enriched by these payments to the detriment of HealthSouth. And to allow Scrushy to retain the benefit of these payments would be unconscionable.' "

http://www.cfo.com/article.cfm/5354197
http://www.nytimes.com/aponline/business/AP-HealthSouth-Scrushy.html

Lionel