Hospital sues Qwest again
By Andy Vuong, Staff Writer
Friday, November 3, 2006
Shriners Hospital for Children on Thursday filed a shareholder
lawsuit against Arthur Andersen, Qwest and several former Qwest
officials, seeking $20 million in damages.
Shriners alleges that the defendants conspired "to inflate the
public market value of Qwest securities in excess of their real
value by overstating the financial position of Qwest."
Tampa, Fla.-based Shriners claims the fraud occurred from May
1999 to at least March 15, 2005, which was when the Securities
and Exchange Commission sued 12 former Qwest executives for
Shriners, which is a network of 22 pediatric hospitals, had
initially sued in 2004. It was subsequently lumped into a
class-action suit that was settled this year for $400 million.
But Shriners said in the suit filed Thursday in U.S. District
Court in Denver that it opted out of the class-action
Qwest spokesman Bob Toevs said the company doesn't comment on
Qwest has restated $2.5 billion in revenues for 2000 and 2001.
Also named in the Shriners suit are Qwest founder Philip
Anschutz, former Qwest chief executive Joe Nacchio, former chief
financial officer Robin Szeliga and nine other former officials.
Staff writer Andy Vuong can
be reached at 303-954-1209 or