settles lawsuit brought by California teachers fund
By Jeff Smith
Rocky Mountain News
Tuesday, January 23, 2007
Qwest Communications and founder Phil Anschutz have settled
a fraud lawsuit filed by one of the country's largest
retirement funds, according to court documents. Financial
terms weren't disclosed, but the California State Teachers
Retirement System, or CalSTRS, previously had opted out of a
$400 million class-action settlement in hopes of doing
better. In the class-action settlement, eligible
stockholders were expected to receive only about 15 cents a
Qwest spokesman Bob Toevs, CalSTRS spokeswoman Sherry Reser
and Anschutz spokesman Jim Monaghan all declined to comment
The Denver telco may not want the CalSTRS settlement.
CalSTRS filed the California state lawsuit four years ago,
alleging Anschutz, former Qwest CEO Joe Nacchio and others
had misled investors. CalSTRS claimed it lost about $150
million in Qwest stock and bonds.
CalSTRS on Jan. 2 filed a request that the lawsuit be
dismissed "with prejudice." Legal experts said that means
CalSTRS has reached a settlement.