The Association of U S West Retirees



Texas teachers settle case for $61.6 million
By Jeff Smith
Rocky Mountain News
Saturday, December 8, 2007

The Teacher Retirement System of Texas announced it has reached a $61.6 million settlement with Qwest Communications on allegations of securities fraud during former CEO Joe Nacchio's tenure.

The Texas retirement fund opted out of a $400 million class-action settlement and pursued its own case.  Officials said the $61.6 million was approximately $60 million more than the fund would have received as its share of the class-action settlement.

Qwest spokesman Bob Toevs referred to a recent regulatory filing in which the Denver telco said it had settled its opt-out cases for a total of $411 million.  The company hasn't disclosed all of the individual settlements, but the parties on average recovered more than 20 cents on the dollar, based on reported investment losses of $1.9 billion.

The Colorado Public Employees' Retirement Association recently said it received $15.5 million through a settlement with Qwest.  The California State Teachers' Retirement System reached a $46.5 million settlement, and the state of Alaska said it settled for $19 million.