Qwest to pay $250 million in SEC case

TwistedMetal · Sep 10, 2004, 09:17 PM

Qwest Communications International has agreed to pay $250 million to settle financial and disclosure fraud charges, a source familiar with the matter said on Friday.

Qwest, the No. 4 U.S. local phone company, has agreed to settle the case without admitting or denying the SEC allegations, the source said.

The settlement agreement was expected to be announced later this month, the source said.

Qwest spokesman Bob Toevs said the company was cooperating with the SEC and the U.S. Department of Justice in their investigations. He declined to comment on whether a settlement has been reached.

An SEC spokesman declined to comment.

The Denver company took a $300 million second-quarter charge to boost reserves for legal costs to $500 million.

The $250-million payout would mark one of the highest imposed this year by the SEC, which has been investigating Qwest since 2001 over whether it inflated revenues to meet analysts' expectations, among other allegations.

The company also faces a Justice Department probe and lawsuits by investors.

Four former Qwest executives have been criminally charged, with two acquitted, one pleading guilty to one count and the last facing a retrial in October.

Qwest's shares were up 9 cents, or 3 percent, at $2.97 on the New York Stock Exchange midday Friday.

Source: ZDNet

Sep 10, 2004, 09:17 PM	#1
TwistedMetal MC John-117 Join Date: Jul 2003 Location: Phoenix, Arizona Posts: 728 Rep Power: 0	Qwest to pay $250 million in SEC case Qwest Communications International has agreed to pay $250 million to settle financial and disclosure fraud charges, a source familiar with the matter said on Friday. Qwest, the No. 4 U.S. local phone company, has agreed to settle the case without admitting or denying the SEC allegations, the source said. The settlement agreement was expected to be announced later this month, the source said. Qwest spokesman Bob Toevs said the company was cooperating with the SEC and the U.S. Department of Justice in their investigations. He declined to comment on whether a settlement has been reached. An SEC spokesman declined to comment. The Denver company took a $300 million second-quarter charge to boost reserves for legal costs to $500 million. The $250-million payout would mark one of the highest imposed this year by the SEC, which has been investigating Qwest since 2001 over whether it inflated revenues to meet analysts' expectations, among other allegations. The company also faces a Justice Department probe and lawsuits by investors. Four former Qwest executives have been criminally charged, with two acquitted, one pleading guilty to one count and the last facing a retrial in October. Qwest's shares were up 9 cents, or 3 percent, at $2.97 on the New York Stock Exchange midday Friday. Source: ZDNet __________________ [color=red][/color]