battle Qwest settlement
The $400 million stockholder pact doesn't resolve accounting
claims against former CEO Joe Nacchio and former CFO Robert
By The Associated Press
Friday, March 24, 2006
Two former Qwest executives have asked a federal judge to
reject a $400 million proposed settlement of shareholder
lawsuits stemming from an accounting scandal, saying it
would bar them from seeking indemnification as they work to
settle the claims.
Former chief executive Joe Nacchio and former finance chief
Robert Woodruff also pointed out in a U.S. District Court
brief filed in Denver late Wednesday that they were never
invited to participate in settlement talks.
"Not surprisingly, the resulting proposed partial settlement
is unfair, unreasonable and inadequate, and would thwart
rather than promote the just, speedy and inexpensive
determination of this action," attorneys for the two men
A telephone message seeking comment from the plaintiffs'
attorney was not immediately returned Thursday.
Nacchio and Woodruff were among a handful of former
executives with Qwest Communications International Inc.
accused by shareholders of making false and misleading
statements that artificially inflated the company's stock
The suits were filed in wake of an accounting scandal that
forced the Denver- based phone company to restate billions
of dollars in revenue.
The tentative $400 million settlement announced in November
would resolve claims against the company, some former
executives and its board of directors, but not Nacchio and
In a Feb. 27 brief, plaintiffs' attorneys said the
settlement was reached during negotiations over a number of
years that included mediation efforts of two judges.
Government officials have said Qwest booked revenue from
one-time sales of equipment and fiber-optic swaps while
falsely claiming to investors that the income was recurring.
Qwest later restated earnings from 2000 and 2001 to erase
about $2.2 billion in revenue.