SEC: Fraud case against former Qwest execs should proceed.
Thursday, June12, 2008
The Securities and Exchange Commission said five former Qwest
executives have failed to prove why the SEC's fraud complaint
against them should be dismissed.
The SEC lawsuit alleges that actions of the former executives,
including former chief executive Joe Nacchio, caused
Denver-based Qwest to improperly report revenue.
The defendants have said classified information on Qwest's
government contracts would help their defense but that the
government is invoking state-secrets privileges that prevent
them from using the information.
The SEC in a response filed Wednesday in U.S. District Court in Denver said the defendants
haven't shown that the protected information is relevant or
would help their defense.