Former Qwest Communications International Inc. CEO Joe Nacchio has filed a lawsuit in a Delaware court over his legal costs.
He said Qwest is balking at paying his legal fees and he is asking the court to require the company to keep footing the bills.
Nacchio last month was found guilty on 19 of 42 counts of insider trading. Appeals still loom and Nacchio also is named in a civil suit by the Securities and Exchange Commission.
Nacchios complaint said Qwest has hired an outside lawyer to determine its obligations for paying Nacchio’s fees and expenses, which are thought to be in the tens of millions of dollars.
Qwest, which has not disclosed how much it has paid in legal fees, said the complaint has no merit. Qwest has covered Nacchios legal bills since his ouster from the company in 2002.
Federal prosecutors contended Nacchio took part in insider trading for sales of $100.8 million in Qwest stock between Jan. 2, 2001, and May 29, 2001. He oversaw Qwest as it lost $100 billion in market value during the telecom downturn.
He faces up to 10 years in prison and a $1 million fine for each of the 19 guilty counts. Sentencing is July 27.
Qwest Communications International Inc. www.qwest.com