A civil fraud lawsuit pending against former Qwest chief Joe Nacchio should be tossed if a federal judge allows the government to invoke its state secrets privilege, his attorneys wrote in a filing today.
“The classified information which the government seeks to suppress permeates the government’s allegations against Mr. Nacchio, making it impossible for him to mount a defense,” Nacchio’s attorneys said.
Other defendants in the case — former Qwest president Afshin Mohebbi, former CFO Robert Woodruff and former accountants James Kozlowksi and Frank Noyes — have made similar filings.
The Securities and Exchange Commission, which filed the lawsuit, said in a filing today that it will dispute the “defendants’ sweeping assertions” that the case must be dismissed if the court allows the government to invoke its state secrets privilege.
The Bush administration asserted the privilege in November, arguing that disclosure of certain information the defendants are seeking could cause damage to the national defense of the United States.
The SEC alleges in its suit that Nacchio and his former subordinates fraudulently booked $3 billion in revenue from 1999 to 2002.
Andy Vuong: 303-954-1209 or avuong@denverpost.com
