Judge Denies Motion to Freeze Qwest Proceeds
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A federal judge denied a request to freeze proceeds from sales of Qwest Communications International Inc. stock by former Chief Executive Joe Nacchio and the company’s founder, Philip Anschutz.
The motion to freeze the proceeds from the stock sales was related to a pending shareholder lawsuit that alleges that Qwest and certain individuals, including Nacchio and Anschutz, engaged in financial fraud, artificially inflating Qwest’s share price between May 24, 1999, and Feb. 14, 2000.
Attorneys representing the Qwest shareholders had sought a court order to freeze the proceeds from the stock sales to ensure that their clients would be able to collect damages if they win their lawsuit.
But the judge poured cold water on the likelihood the plaintiffs would prevail.
Qwest shares rose 37 cents to $4.99 on the NYSE.
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