A Collaboration with the University of Pittsburgh

Federal appeals court grants full rehearing of Nacchio insider trading case

[JURIST] The US Court of Appeals for the Tenth Circuit [official website] on Wednesday granted [order, PDF] prosecutors' petition for an en banc rehearing on whether the insider trading conviction of former Qwest Communications [corporate website] CEO Joseph Nacchio [JURIST news archive] should be overturned. In March, a Tenth Circuit panel struck down [ruling, PDF; JURIST report] Nacchio's conviction and ordered a new trial, finding that US District Judge Edward Nottingham improperly excluded testimony from defense witness Daniel Fischel [academic profile], a corporate law and markets expert scheduled to present information on public disclosure requirements for Nacchio's stock sales. Nacchio had appealed his April 2007 insider trading conviction [JURIST report] for selling $52 million of Qwest stock in 2001 based on non-public information shortly before the stock sharply dropped in value. AP has more.

Federal prosecutors indicted Nacchio in December 2005 on 42 counts of insider trading [JURIST report]. He and other former Qwest executives still face civil fraud charges [JURIST report] brought by the US Securities and Exchange Commission [official website] on allegations that Qwest improperly reported approximately $3 billion in revenue that eased its 2000 merger with US West. Another former Qwest employee, ex-vice president Marc Weisberg, pleaded guilty to wire fraud [JURIST report] in December 2005 and helped prosecutors build their case against Nacchio.

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.