A federal magistrate this week ordered Qwest to turn over to a group of shareholders 220,000 pages of unpublished documents and an internal analysis of the government’s investigation into accounting fraud at the company.
The order was a victory for shareholders suing Qwest for alleged securities violations in a case that makes claims similar to those made by the U.S. Securities and Exchange Commission against the company and numerous former officials.
The shareholders, including several large pension funds, are seeking class-action status for their suit, filed in U.S. District Court in Denver in 2001.
The order Tuesday by Magistrate Judge Craig Shaffer does not necessarily mean Qwest must hand over the documents. The company may appeal to the federal judge overseeing the case, Robert Blackburn.
Even if the documents eventually are turned over, Qwest is likely to ask the court to seal them from public access.
A spokesman for Qwest declined to comment Thursday. Kip Shuman, the Denver attorney for the plaintiffs, also declined to comment.
Qwest settled the SEC case in October, agreeing to pay $250 million, though some former executives face civil claims by the SEC.
Staff writer Greg Griffin can be reached at 303-820-1241 or ggriffin@denverpost.com.
