investors to share $250M
By Rocky Mountain News
Saturday February 25, 2006
The Securities and Exchange Commission said Friday it will
distribute $250 million to aggrieved Qwest shareholders as part
of the settlement of a similar class-action lawsuit. Qwest
agreed to pay $250 million to settle civil fraud charges with
the SEC in 2004. Certain former executives of Qwest who have
settled charges with the SEC have also put money into the "Fair
Fund," as it's called. It now has $252.9 million to distribute
to former Qwest shareholders.
Throughout 2005, Qwest still had to deal with plaintiffs in a
class-action securities fraud suit. The telco settled that case
last November for $400 million.
The federal regulators wanted "to minimize costs, maximize the
recovery of investors, and complete the distribution (of the
Fair Fund money) as efficiently as possible." So the SEC will
piggyback on the class-action settlement to get it done.
The SEC said investors who purchased common stock of Qwest
during the period from July 27, 1999, through July 28, 2002, may
be eligible to share in the Fair Fund. That time frame is not
the same as the Class Period in the Qwest class-action
The SEC said no attorneys' fees can be claimed, and none will be
deducted, from the Fair Fund.
Claims documents can be obtained from administrator Gilardi &
Co. LLC by mailing the firm at P.O. Box 808003, Petaluma, CA
94975-8003, calling 1-800-516-6339, or downloading them from