The Association of U S West Retirees



Preliminary OK given to Qwest investor settlement
The Associated Press
Denver Post
Thursday, November 27, 2008

DENVERA federal judge gave preliminary approval Wednesday to a $45 million settlement of shareholder allegations of securities fraud by two former Qwest executives.  Former Qwest Communications International Inc. CEO Joseph Nacchio and former Chief Financial Officer Robert Woodruff do not admit any guilt in the settlement.  A hearing on the deal is set for March 27.

The New England Health Care Employees Pension Fund filed a class-action lawsuit in 2001 against Qwest and former executives, alleging securities fraud related to a collapse in company stock.  Denver-based Qwest later reached a $400 million settlement with the plaintiffs, but the agreement didn't include Nacchio and Woodruff.

The two men appealed their exclusion from the settlement and argued that Qwest was required contractually to indemnify them from civil lawsuits.

Qwest said in August that it would contribute $40 million, with Nacchio and Woodruff contributing an extra $5 million out of insurance proceeds, to resolve the matter.