Administration November 26, 2007

Colorado PERA Settles with Qwest for $15.5M

November 26, 2007 (PLANSPONSOR.com) - The Colorado Public Employees Retirement Association (PERA) has reached a $15.5 million settlement with Qwest Communications International on allegations of fraud.
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The Kansas City (Missouri) Star reports the retirement fund had opted out of a $400 million class-action settlement reached in 2005. The retirement fund’s general counsel said PERA’s share of that settlement would have been about $400,000, according to the news report.

Qwest announced in an October filing with the Securities and Exchange Commission (SEC) it had agreed to pay a total of $411 million to shareholder groups that had opted out of the class-action settlement. The SEC accused Qwest and several former executives of a massive financial fraud that forced the company to restate $2.2 billion in revenue, the Star said.

The company agreed to a $250 million settlement with the SEC in 2004 without admitting or denying wrongdoing.

The SEC’s civil case against five former Qwest executives is pending. Former CEO Joe Nacchio was convicted in April on 19 criminal counts of insider trading and has appealed.

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