Testimony questioned in HealthSouth lawsuit

Two former HealthSouth Corp. officials who agreed to plead guilty in the firm’s fraud case refused to answer questions in court as lawyers for fired chief executive Richard Scrushy, front left, tried to show Scrushy didn’t know about the scheme.

Emery Harris, who was vice president and assistant controller of the rehabilitation services giant, invoked his Fifth Amendment right against self-incrimination 95 times Thursday. A day earlier, former chief financial officer Tadd McVay asserted the same right more than 70 times.

Scrushy has not been charged, but the government contends he was behind a scheme in which HealthSouth’s earnings were overstated by $2.5 billion since 1997. Scrushy’s defense contends he was not aware of the scam.

Development

Serologicals plant on schedule to open

Officials with Serologicals Corp. said in an earnings release Thursday that construction of their $28 million biotech plant in Lawrence was on schedule and on budget.

The plant, which will be at the East Hills Business Park, is expected to open in early 2004. It is expected to employ 40 people once it is completed.

The company also announced earning fell for the first quarter of 2003 to 8 cents per share, down from 11 cents per share in the past quarter.

Railway

UP earnings decline

High fuel prices hurt first-quarter earnings at the nation’s largest railroad as Union Pacific Corp. reported net income Thursday of $155 million, or 60 cents a share before an accounting change.

Diesel fuel costs were up more than 39 cents a gallon over last year, reducing earnings by nearly 30 cents a share, Union Pacific chairman and chief executive Dick Davidson said. The railroad operates in Lawrence.