Scrushy said Monday he would give up his seat ahead of a Dec. 29 shareholder meeting where leaders plan to introduce a new slate of directors that doesn't include Scrushy, acquitted of criminal charges but still facing numerous lawsuits over the scandal.

Scrushy - who blamed the $2.6 billion accounting scheme on underlings - owns more than 3.7 million HealthSouth shares and said he plans to nominate some of his own directors at the meeting.

But Scrushy, who has talked about returning to HealthSouth and regularly criticizes the current management, also conceded he will not return to the Birmingham-based medical services company, which he often refers to as one of his children.

"I recognize that I will not be part of the board or the management team of HealthSouth," he said. "Still, I built the company and remain a major shareholder of the company and regardless of what anyone says, I want the best for HealthSouth."

Scrushy said he also wants the company to pay his legal bills, a claim the company said amounts to some $25 million.

HealthSouth spokesman Andy Brimmer called Scrushy's resignation from the board "long overdue."

Scrushy, who maintains his firing as chief executive was improper, has remained on the board in name only. Directors meet in a special committee that includes all members except Scrushy.

Jurors in June acquitted Scrushy on multiple criminal charges of leading the fraud, in which 15 other executives pleaded guilty and another was convicted during a trial.

The jury rejected government claims that Scrushy directed a scheme to overstate earnings to meet Wall Street expectations. Scrushy maintained he was duped by subordinates for years and was unaware of the conspiracy.

-- JAY REEVES (Associated Press Writer)