Judge tosses some claims against ex-Qwest CEO
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.
A hearing is set April 14 for the SEC to clarify remaining claims, including insider trading allegations against Nacchio and former Chief Financial Officer Robert Woodruff that hinge on those claims, Krieger wrote.
Some claims tossed 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. The SEC alleged that both practices could have given investors a misleading picture of Qwest’s revenues.
Krieger dismissed some of those claims, saying the SEC hadn’t shown that certain defendants were to blame for any alleged deceit.
The SEC lawsuit was filed against Nacchio, Woodruff, former President Afshin Mohebbi, and former accountants Frank Noyes and James Kozlowski.
Nacchio was convicted on 19 criminal insider trading counts but was acquitted on 23 counts in 2007. He reported to prison last year but is awaiting a new sentence following an appeals court ruling that his sentence of six years in prison and $71 million in fines and forfeitures was improperly calculated.
The SEC allegations concerning insider trading are different from the criminal case, Krieger wrote. The criminal case alleged Nacchio sold Qwest stock using insider information that the company wouldn’t meet its public revenue forecasts. The SEC focuses on whether he recognized that one-time revenues and monthly revenues were being reported together.
To sign up for Mississippi Business Daily Updates, click here.
Twang & Tourism: The Country Music Trail
Still planning that summer vacation?
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- Silver Airways ordered to continue service
- Seafood R’evolution set to make Mississippi ‘the new culinary epicenter of the South’
- Bryant signs controversial abortion ban bill
- Soybean yield more than doubles in less than a decade
- Two Delta groups getting economic development funding
- Pharma Pac lays off rest of workers; could end up owing state
- Plans unveiled for large shooting range on Coast
- Ole Miss launches commitment to be 'climate neutral'
- Yarber could be sworn in today as new Jackson mayor
- Biloxi baseball project still alive but may be held for 2015