Court rules against HealthSouth in auditor dispute

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The Alabama Supreme Court ruled against Birmingham-based HealthSouth Corp. on Friday in a legal dispute linked to the accounting fraud that rocked the rehabilitation company more than a decade ago.

The justices rejected an appeal filed by HealthSouth in a legal fight involving its one-time auditing company, Ernst & Young.

Shareholders filed a complaint on behalf of HealthSouth blaming Ernst & Young for failing to detect the $2.6 billion accounting scam that occurred under former CEO Richard Scrushy, who was acquitted of criminal charges in 2005. A civil court later held him responsible for the swindle.

An arbitration panel ruled against HealthSouth in a complaint aimed at making Ernst & Young share responsibility for the fraud, and HealthSouth appealed to Jefferson County Circuit Court. That court sided with the auditor, and HealthSouth appealed again.

The Supreme Court, in a decision written by Justice James Main, upheld the ruling against HealthSouth. The justices said there was no evidence the arbitration decision against HealthSouth was fundamentally unfair or that the panel engaged in any misconduct.

Evidence showed HealthSouth inflated its earnings by some $2.6 billion from the late 1990s through the early 2000s, when the scheme was uncovered. Fifteen HealthSouth employees pleaded guilty and jurors convicted one other.

Scrushy blamed everything on underlings but later served time in federal prison after being convicted in a bribery scheme involving former Gov. Don Siegelman, who remains in prison in Oakdale, La.

Scrushy, who maintains his innocence to all charges, now lives in Texas and sometimes lectures about corporate fraud.

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USCIS Adjusting Premium Processing Fee

U.S. Citizenship and Immigration Services (USCIS) announced today it is adjusting the premium processing fee for Form I-129, Petition for a Nonimmigrant Worker and Form I-140, Immigrant Petition for Alien Workers beginning on Oct. 1, 2018 to more effectively adjudicate petitions and maintain effective service to petitioners.

The premium processing fee will increase to $1,410, a 14.92 percent increase (after rounding) from the current fee of $1,225. This increase, which is done in accordance with the Immigration and Nationality Act, represents the percentage change in inflation since the fee was last increased in 2010 based on the Consumer Price Index for all Urban Consumers.

“Because premium processing fees have not been adjusted since 2010, our ability to improve the adjudications and service processes for all petitioners has been hindered as we’ve experienced significantly higher demand for immigration benefits. Ultimately, adjusting the premium processing fee will allow us to continue making necessary investments in staff and technology to administer various immigration benefit requests more effectively and efficiently,” said Chief Financial Officer Joseph Moore. “USCIS will continue adjudicating all petitions on a case-by-case basis to determine if they meet all standards required under applicable law, policies, and regulations.”

Premium processing is an optional service that is currently authorized for certain petitioners filing Forms I-129 or I-140. The system allows petitioners to request 15-day processing of certain employment-based immigration benefit requests if they pay an extra fee. The premium processing fee is paid in addition to the base filing fee and any other applicable fees, which cannot be waived.

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