Less than a week after The Securities and Exchange Commission temporarily suspended trading in the securities of HealthSouth Corporation, Dorothy Lee Warren, a Montgomery resident, has filed a securities fraud lawsuit against the Birmingham based company and CEO Richard Scrushy.

The complaint alleges numerous serious violations of Federal Securities Laws, including the issuing of false financial statements, and accuses both the company and Scrushy of civil fraud.

HealthSouth is accused of intentionally and falsely inflating its financial position on orders from Scrushy to make it appear the company was meeting or exceeding Wall Street expectations. This is another case where a giant corporation lied to both the Government and the public – and while Scrushy and others profited, investors suffered tremendous financial losses as a result of the numerous acts of fraudulent conduct.

“Mr. Scrushy has personally profited from the fraudulent scheme he put in place to artificially inflate both the earnings and assets of the company,” said Jere Beasley, one of the lawyers representing Ms. Warren. “The CEO knew that HealthSouth’s financial statements were false and greatly overstated the company’s operating results. Our client was a victim of this corporate giant and its greedy CEO. This case is just another example of how some in Corporate America believe they can lie, cheat, and steal and not have to pay the consequences,” Beasley said this week.

HealthSouth is one of the nations largest healthcare providers, operating 1,700 facilities in the United States, Brittain, Australia, Canada, Peurto Rico, and Saudi Arabia. The Warren case was filed in the Circuit Court of Montgomery County, Alabama. Attorneys representing Ms. Warren are Jere Beasley and Rhon Jones of Beasley, Allen, Crow, Methvin, Portis & Miles, P.C.

Beasley indicated that other lawsuits against the company will be filed very soon. “It is likely that other individuals and companies will be added as Defendants as this fraudulent scheme unravels,” he said. “This is only the first of what will be thousands of civil cases,” he said.



We're here to help!

We live by our creed of "helping those who need it most" and have helped thousands of clients get the justice they desperately needed and deserved. If you feel you have a case or just have questions please contact us for a free consultation. There is no risk and no fees unless we win for you.

Fields marked    may be required for submission.
  1. I'm an attorney

data security act

Data Security Act would rob consumers of access to...

The proposed Data Security Act of 2014, introduced in the U.S. Senate this week, appears to provide...

Beasley Allen attorney secures $2.3 million jury...

LEE COUNTY, SOUTH CAROLINA – (April 2, 2012) Beasley Allen attorney William E. Hopkins, Jr., along...

Trial Court awards $38.2 million to the State of...

MONTGOMERY, ALA. (September 2, 2011) – Today Judge Thomas L. Zebert found in favor of the State of...

Attorney for victim of wrongful foreclosure turns...

After a Collier County, Florida, couple were the victims of a wrongful foreclosure, their attorney...

Looking for price gouging - check a gas station

Montgomery Advertiser columnist Josh Moon says while Alabama AG Luther Strange is concerned about price...

Target shorts customers on coupons, Beasley Allen...

A Jefferson County woman has filed a federal lawsuit against Target Corporation, claiming two area...

Professional and appropriate manner

My claim was handled in a very professional and appropriate manner. I was very pleased with my outcome and that the claim was resolved without having to go through a trial.

—Michael