Qwest Communications International Inc. (NYSE:Q)
In the Qwest ERISA litigation, Robbins Umeda LLP served on plaintiffs' executive committee in a class action brought as a civil enforcement suit for violations of the Employee Retirement Income Security Act (ERISA), which sets minimum standards for the protection of individuals who have private industry pension and health plans. The class consisted of all participants and beneficiaries of the Qwest Savings & Investment Plan, a defined contribution and individual account plan operated and established by Qwest Communications International, Inc., a global communications, data, multimedia, and Internet-based service provider.
The employees alleged that Qwest’s management repeatedly misrepresented the financial status of Qwest to its employees to encourage employees to make discretionary investments in the Qwest common stock. When the truth about Qwest’s financial condition and egregious accounting manipulations was revealed, the price of Qwest common stock plummeted, but employees were restricted from selling their retirement fund shares under the terms of the Qwest Savings & Investment Plan. By the time the restriction was lifted, Qwest stock was trading at an all-time low, devastating the employees' retirement funds. After years of contentious litigation, Robbins Umeda LLP helped achieve a $37.5 million settlement for the benefit of the employees who had invested in the retirement plan.
In re Qwest Savings and Investment Plan ERISA Litigation, No. 02-cv-00464 (D. Colo. Jan. 29, 2007).
