Securities Fraud

Austin, TX: (Dec-05-07) The Teacher Retirement System of Texas (TRS) brought charges against Qwest Communications International Inc. alleging that the Denver-based telecom giant engaged in securities fraud. Sources stated that the retirement system could have stayed in an initial class action lawsuit against Qwest involving a multibillion-dollar accounting fraud, which resulted in a $400 million settlement. But instead, the Texas system and several other states including Colorado, Florida and New York, filed separate litigation claiming about $1.9 billion in damages.

As part of a recent development, sources claimed that Qwest Communications had agreed to a $61.6 million payout to resolve the securities fraud case. Records show that Qwest said in a regulatory filing in October 2007 that it had agreed to pay a total of $411 million to shareholders, including the Texas fund that opted out of the class action. [STATESMAN: TRS QWEST SETTLEMENT]

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