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Shriners Hospital sues Qwest again
By Andy Vuong, Staff Writer
Denver Post
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 fraud.

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 settlement.

Qwest spokesman Bob Toevs said the company doesn't comment on pending litigation.

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 avuong@denverpost.com.

http://www.denverpost.com/business/ci_4594462