Judge plans to dismiss perjury counts against Scrushy Matt Lubniewski at 12:32 PM ET
[JURIST] A federal judge in Alabama indicated Tuesday that she would throw out three perjury counts against former HealthSouth [official site] CEO Richard Scrushy [Wikipedia entry], but that she would allow his trial to proceed on additional charges. District Judge Karon Bowdre indicated that she would grant a defense motion to bar jurors from hearing evidence about Scrushy's sworn statements to an SEC investigator, telling jurors they would have "three fewer charges to deal with." A written order is expected later this week. Scrushy still must face charges of conspiracy, fraud, money laundering, obstruction of justice and false corporate reporting. This is the first case of a CEO being accused of violating the Sarbanes-Oxley Act [bill text, PDF], passed in 2002 in response to well-publicized corporate fraud scandals. Even without the perjury charges, Scrushy could still receive a life sentence and be ordered to pay fines up to $278 million if convicted. AP has more. The Northern District of Alabama has additional information about the trial.
Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible, ad-free format.