HealthSouth Corp. founder Richard Scrushy will pay the company $31 million as part of a litigation settlement over his bonuses and legal fees.

Scrushy dropped his own suit seeking $21 million for legal fees after HealthSouth agreed to credit that amount against the $52 million he owed for his inflated bonuses, according to one of the lawyers for the founder of the health care company. HealthSouth forced Scrushy out in 2003 after auditors uncovered a $2.7 billion accounting fraud at the company.

The settlement still doesn’t resolve HealthSouth’s claims that Scrushy violated his employment contract by failing to discover the accounting fraud. He was acquitted once of criminal fraud charges last year, but still faces suits from HealthSouth investors.

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