STOCK QUOTES     More market data...

Judge tosses some claims against Qwest

By The Associated Press

E-mail this article Print this article Search archive Most read articles Most e-mailed articles

DENVER — A federal judge has dismissed civil claims against a former president of Qwest and some allegations lodged against the telecommunications company in a lawsuit filed by investors.

U.S. District Judge Robert Blackburn also threw out claims against a former sales executive but left intact allegations that Arthur Andersen's audit of Qwest's 1999 network-capacity accounting was misleading.

Blackburn ordered that other issues may go forward against Qwest, director Phil Anschutz and some former key executives including former Chief Executive Joe Nacchio, who has denied wrongdoing.

Among the claims he dismissed against Qwest were allegations that the company exaggerated the number of its wireless customers, improperly accounted for costs of a video DSL project, and engaged in practices related to putting unauthorized charges on a customer's bill.

The ruling made public late Wednesday came in a consolidated investors' lawsuit filed in 2001 accusing the company and its executives of misleading investors, and accounting and securities fraud.

The dismissed claims were included in an amended complaint filed in February. That complaint added former President Afshin Mohebbi and former sales executive Gregory Casey. Blackburn said the additions of Mohebbi and Casey exceeded the scope of a previous order in the case.

Attorney Thomas Egler, who represents the plaintiffs, declined comment yesterday.

The Securities and Exchange Commission in 2002 accused Qwest's former managers of accounting fraud. Qwest has agreed to pay $250 million to investors to settle the SEC claims without admitting or denying the allegations.

Copyright © 2004 The Seattle Times Company

E-mail this article

Print this article

Search archive

More business & technology headlines...