Qwest, California teacher fund settle |
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Published
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Thu, 01 Feb 2007 02:03
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SACRAMENTO, Calif. (AFX) - California's giant teacher pension fund has reached a nearly $47 million settlement with embattled Qwest Communications over a lawsuit claiming that the Denver-based company defrauded the fund of $150 million.The settlement had been under seal in San Francisco County Superior Court and was made public Wednesday.It calls for Qwest, its accountants and banks to pay the pension fund $45 million. Former Chief Executive Officer Joseph Nacchio must pay $1.5 million.The California State Teachers' Retirement System took the losses when Qwest Communications International Inc.'s stock collapsed in 2002 amid allegations of accounting fraud. In addition to the company, the pension fund's lawsuit also named Qwest's top executives and several financial services companies.Nacchio is scheduled to go on trial in March in Denver on charges that he sold $101 million worth of Qwest stock based on inside knowledge that the company would not meet revenue targets.Nacchio also is one of several former Qwest executives accused by the Securities and Exchange Commission in a civil case alleging they orchestrated a financial fraud that forced the company to restate billions of dollars in revenue. That case is pending.The SEC in 2002 accused Qwest's former managers of massive accounting fraud. Qwest later paid $250 million to investors to settle the claims without admitting or denying the allegations.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Qwest announces $1.44M contract 