Getting your player ready...
A federal judge in Denver has narrowed the scope of a fraud case against five former Qwest officials, including former chief executive Joe Nacchio, throwing out several allegations leveled by the Securities and Exchange Commission.
The dismissed claims were connected to allegations that the defendants committed fraud when they booked revenue from network-capacity swaps from 1999 to 2002 in a lump sum rather than over the life of the multiyear contracts.
The case will now focus on whether Qwest was required to advise investors in public filings that its communications revenue consisted of both monthly and lump-sum revenue and whether any of the defendants were “sufficiently cognizant of that fact.”
