Qwest In Settlement Negotiations

On the heels of its $250 million settlement with the SEC last month, Qwest Communications is apparently in negotiations to settle the securities class actions pending against the company. An article in the Rocky Mountain News states that Qwest and the California State Teachers’ Retirement System, which is acting as lead plaintiff, have recently engaged in a mediation. One analyst quoted in the article suggests that any settlement under $500 million would be a “net win for Qwest.” In any event, it would be less than the “billions of dollars” in damages that lead counsel was reported to be seeking.