AUSWR
The Association of U S West Retirees
 

 

 

Telco sued over failed European joint venture
By Jeff Smith
Rocky Mountain News
Thursday, November 2, 2006


A $278 million lawsuit was filed against Qwest Communications and some of its former executives in connection with the Denver telco's handling of its failed European joint venture KPNQwest.  The suit, filed in The Netherlands on Sept. 13 by Cargill Financial Markets and Citibank, alleges Qwest, former CEO Joe Nacchio and others misrepresented KPNQwest's financial condition, and wrongfully allowed KPNQwest to borrow funds under a credit line.

The lawsuit was described in Qwest's quarterly filing to regulators this week.  Last spring, Qwest settled a KPNQwest shareholder class-action lawsuit for $11 million.

Last month, a New Jersey federal judge dismissed a KPNQwest $7 billion securities fraud suit, saying it should have been filed in The Netherlands.

http://www.rockymountainnews.com/drmn/tech/article/0,2777,DRMN_23910_5111573,00.html