Judge narrows SEC lawsuit against ex-Qwest execs

 

Associated Press

April 2, 2009

DENVER — A federal judge has thrown out some claims in a civil lawsuit the Securities and Exchange Commission filed against former Qwest executives, including former CEO Joe Nacchio.

U.S. District Judge Marcia Krieger let stand allegations focusing on whether Denver-based Qwest Communications International Inc. misled investors by not specifying how much of its revenue between 1999 and 2002 was one-time and how much was recurring.

Some claims tossed Wednesday concerned whether defendants improperly helped Qwest backdate sales or record revenue from leases of its fiber-optic network upfront rather than over the life of the contracts.

Nacchio was convicted on insider trading charges and is serving a six-year prison term, but a court last year ruled the sentence was too harsh.

Copyright © 2010 The Associated Press. All rights reserved