Qwest Sets Liability Reserve

The Associated Press reports that Qwest Communications Intl., Inc. is “setting aside a reserve of at least $100 million to cover potential liability from stockholder lawsuits and federal investigations.” The announcement was made as part of the company’s recent Form 10-K filing, in which Qwest did not specify the exact amount of the reserve, but stated “it is probable that all but $100 million of the recorded reserve will be recoverable out of a portion of the insurance proceeds, but the use and allocation of these proceeds has yet to be resolved between us and individual insureds.”

There seems little doubt that any settlement of the securities class action pending against Qwest in the D. of Colo. is likely to be for a significant sum.

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