Judge Robert Blackburn’s order approving two settlement agreements was made public on Thursday in U.S. District Court in Denver, according to Reuters. Shareholders, predominantly pension funds, filed numerous class action lawsuits beginning in 2001 when multibillion dollar accounting discrepancies began coming to light (see CalSTRS Sues Qwest, Bankers Over $150 Million Loss ).
The investors had reached a proposed settlement with Qwest of $400 million in 2005. But that was held up by appeals by former Qwest CEO Joseph Nacchio and former CFO Robert Woodruff, according to the report.
Last August, Nacchio and Woodruff agreed to add an extra $5 million from insurance proceeds to the settlement, while Qwest pitched in another $40 million. The U.S. Securities and Exchange Commission also contributed $250 million to the settlement, after Qwest paid the commission $250 million to settle a similar securities fraud lawsuit the SEC had filed earlier.
Nacchio, who was convicted in 2007 on 19 counts of insider trading, is serving a six-year prison term and was fined $19 million and ordered to forfeit $52 million in stock sales.
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