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| 2004
News and Press Releases |
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SETTLEMENT "OR" DISMISSAL:
Judge OKs Settlement Of 5 Qwest Lawsuits
By: Staff Writer
The Associated Press. June 15, 2004
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EXCERPT: A judge approved a $25 million deal Tuesday that settles five shareholder lawsuits accusing Qwest Communications and former executives, including Joe Nacchio and billionaire Philip Anschutz, of insider trading. The settlement will require Qwest to change corporate governance and appoint a committee of independent directors to consider separating the roles of chairman and chief executive. The plaintiffs' attorneys said an exhaustive review of more than 6 million documents, congressional testimony and other research did not turn up evidence of improper activity by former CEO Nacchio, Qwest founder Anschutz or other defendants. ``The review of millions of pages of documents failed to unearth a 'smoking gun' that connected Messrs. Nacchio or Anschutz to the accounting improprieties that were allegedly transacted by Qwest's middle to upper management,'' attorney Charles W. Lilley said in a brief made public Tuesday. Representatives of Qwest and Anschutz were pleased with the settlement. Nacchio's spokeswoman said he could not be reached for comment….The lead lawsuit was filed in November 2002 in Denver District Court by shareholder Thomas Strauss on behalf of the company. It alleged the defendants breached their fiduciary duties. A second was filed in another Colorado state court, two more in Delaware district courts and a fifth in U.S. District Court. A class-action shareholder lawsuit still is pending in U.S. District Court. The $25 million will come from an insurance fund negotiated among representatives of Qwest, various insurance companies and individuals who were covered by insurance, Lilley said….Two former Qwest middle managers have been acquitted of criminal wire and securities fraud charges and a third pleaded guilty to a single count of accessory after the fact. A fourth is scheduled to face trial on wire and securities fraud counts next month.
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