Preliminary OK given to Qwest investor settlement
The Associated Press
Thursday, November 27, 2008
judge gave preliminary approval Wednesday to a $45 million
settlement of shareholder allegations of securities fraud by two
former Qwest executives. Former Qwest Communications
International Inc. CEO Joseph Nacchio and former Chief Financial
Officer Robert Woodruff do not admit any guilt in the
settlement. A hearing on the deal is set for March 27.
The New England Health Care Employees Pension Fund filed a
class-action lawsuit in 2001 against Qwest and former
executives, alleging securities fraud related to a collapse in
company stock. Denver-based Qwest later reached a $400
million settlement with the plaintiffs, but the agreement didn't
include Nacchio and Woodruff.
The two men appealed their exclusion from the settlement and
argued that Qwest was required contractually to indemnify them
from civil lawsuits.
Qwest said in August that it would contribute $40 million, with
Nacchio and Woodruff contributing an extra $5 million out of
insurance proceeds, to resolve the matter.