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Perjury charges against Richard Scrushy are not being pursued by the Justice Department. The former CEO of HealthSouth Corp. was acquitted last month following a lengthy fraud trial.

Alice Martin, lead prosecutor at Mr Scrushy's trial filed a motion with the United States Court of Appeals for the 11th Circuit, dropping the appeal "based on legal considerations".

During the trial three perjury charges had been dismissed by the trial judge.

Mr Scrushy, however still faces legal action over the HealthSouth finances. The Securities and Exchange Commission has asked a federal judge, to allow a civil case against Mr Scrushy.

The SEC case centres on insider trading and other violations.

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