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United States v. Scrushy

2004 WL 2713262 (2004)

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United States v. Scrushy

United States District Court for the Northern District of Alabama
2004 WL 2713262 (2004)

KS

Facts

Richard Scrushy (defendant) was the chief executive officer of HealthSouth Corporation. As the chief executive officer, Scrushy certified in writing the accuracy of HealthSouth’s financial reports as required by the Securities Exchange Act of 1934. The United States (plaintiff) indicted Scrushy for multiple criminal violations related to the alleged wrongful inflation of HealthSouth stock and the subsequent financial enrichment of Scrushy and others. The indictment included three counts of false certification under § 906 of the Sarbanes-Oxley Act. Scrushy filed a motion to dismiss the three counts arising under § 906 of the Sarbanes-Oxley Act, arguing that § 906 is so vague as to be unconstitutional on its face. Specifically, Scrushy argued that the terms “fairly presents, in all material respects” and “willfully certifies” are facially unconstitutional and that these terms are so vague that an ordinary individual cannot be aware of prohibited conduct.

Rule of Law

Issue

Holding and Reasoning (Bowdre, J.)

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