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Prosecutors drop Scrushy appeal

BIRMINGHAM, Ala. - The government dropped plans to retry Richard Scrushy on Wednesday, saying it would not appeal a judge's decision to dismiss perjury charges against the fired HealthSouth Corp. CEO acquitted of fraud.

Immediately after Scrushy's trial last month, federal prosecutors said they would ask an appeals court to reinstate counts accusing Scrushy of lying to the Securities and Exchange Commission about an earnings overstatement.

U.S. Attorney Alice Martin said the government had decided against pursuing any appeal. The decision means Scrushy will not have a second criminal trial, she said.