The attorneys for former HealthSouth CEO Richard Scrushy – on trial on charges related to the company’s $2.7 billion accounting scandal – have asked a judge to throw out 78 out of the 85 criminal charges against Scrushy and have said that the Sarbanes-Oxley Act is vague and its use in this case is unconstitutional.
Although 17 other former HealthSouth execs have pleaded guilty to fraud charges, Scrushy is pleading not guilty on all counts. His attorneys say most of the charges are flawed as they are all for basically the same offence, fraud, carried out in different ways and Scrushy should have only been charged for eight counts.
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