December 22, 2005

National Security secrets may play role in Nacchio's defense

This story, an update of one that ran yesterday, includes a comment from law professor Peter Henning about the trial of former Qwest CEO Joe Nacchio, who is accused of publicly exaggerating the firm's financial health before selling 2.5 million shares for a substantial profit before the share value plummeted. The defense contends Nacchio did not know the company's stock value was about to decline and that, in fact, Qwest had obtained lucrative national security contracts that would raise the value. "It all comes down to what's in Nacchio's mind," Henning explained. He observed that defense attorneys are attacking the prosecution's contention that the defendant knew the stock price was about to decline.

Subscribe to Today@Wayne

Direct to your inbox each week

Related articles