U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19577 / February 24, 2006
Securities and Exchange Commission v. August M. Cruciotti, Civil Action No. 04-CV-01267-WYD (D.C. Colo.)
Notice of Proposed Distribution of Fair Funds to Investors in Qwest Communications International Inc.
The Securities and Exchange Commission today filed a motion with the United States District Court for the District of Colorado requesting approval of its distribution plan for the over $250 million Fair Fund established pursuant to Section 308 of the Sarbanes-Oxley Act of 2002 as a result of settlements arising from the Commission's financial fraud investigation of Qwest Communications International Inc. ("Qwest"). The Commission proposed transferring the Fair Fund for distribution to aggrieved investors through the proposed consolidated class action settlement in In re Qwest Communications International Inc. Securities Litigation, Civil Action No. 01-CV-1451-REB-CBS (D. Colo.) (the "Consolidated Class Action"). The Commission's plan seeks to minimize costs, maximize the recovery of investors, and complete the distribution as efficiently as possible.
Under the Commission's plan, investors who purchased Qwest securities during the period July 27, 1999 through and including July 28, 2002, may be eligible to recover from the Fair Fund. Moreover, investors who traded within the relevant time period and who choose to opt out of the distribution from the Consolidated Class Action may still be entitled to recover from the Fair Fund. In addition, the Commission requested that the Court appoint the Consolidated Class Action's claims administrator, Gilardi & Co., LLC, as distribution agent for the Distribution Fund and approve the Notice to Possible SEC Fair Fund Claimants filed with the motion. No part of the Distribution Fund will go to pay fees and expenses of class action counsel. A copy of the proposed Notice to Possible SEC Fair Fund Claimants is attached and information regarding the proposed Distribution Agent may be found at www.gilardi.com.