The Securities and Exchange Commission is expected to announce tomorrow a settlement with Qwest that is highly critical of “senior management,” two sources familiar with the case said.
The approximately 50-page settlement does not name specific individuals in addressing charges that the company misled investors during the 2000-2001 period, when former CEO Joe Nacchio was at the helm.
Qwest will pay $250 million to settle the charges but will neither admit nor deny guilt, said the two sources, who spoke on condition of anonymity.
The potential $250 million settlement amount was first reported in September. Both the SEC and Qwest declined to comment Wednesday.
While a settlement would remove a cloud that has shadowed Qwest, other legal hurdles remain.
The company faces a Department of Justice probe. Shareholders, as well as former and current employees, have filed suit, claiming the company and its executives caused the value of Qwest’s stock and savings plans to plummet.
Qwest shares, which once traded above $60, closed Wednesday at $3.32, down five cents.
Staff writer Tom McGhee can be reached at (303)820-1671 or tmcghee@denverpost.com
