Nacchio's New Deal

5:40 PM -- From The Wall Street Journal over the weekend: We see former Qwest Communications International Inc. (NYSE: Q) CEO Joseph Nacchio might get a revised prison sentence.

Nacchio was convicted in 2007 and began serving a six-year term in April. (See Nacchio Heads to the Big House and Former Qwest Boss Gets Six for Insider Trading.) But the Tenth Circuit Court of Appeals in Denver has ruled Nacchio was improperly sentenced and shouldn't have been forced to pay $52 million.

That figure was derived from the $28 million Nacchio supposedly netted from insider trading. But lawyers successfully argued that his gain was more like $1.8 million. The Tenth Circuit left it to a lower court to decide what the new amount should be.

Likewise, the lower court will revisit the length of the sentence, which is supposed to be proportionate to the amount gained via insider trading. Nacchio's lawyers are helpfully suggesting four years and three months.

— Craig Matsumoto, West Coast Editor, Light Reading

Pete Baldwin 12/5/2012 | 5:09:35 PM
re: Nacchio's New Deal

It makes for an amusing first paragraph, anyway:

"Joseph Nacchio, the former Qwest Communications International Inc. (Q) chief executive officer convicted of insider trading, sued his defense lawyers, claiming they were negligent and 'grossly overbilled him' for costs including underwear."


So, if this suit falls apart, does he sue his plaintiff lawyers for incorrectly suing his defense lawyers?

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