NETHERLANDS/US – The Dutch civil service pension fund Stichting Pensioenfonds ABP is suing US telecoms group Qwest Communications International for 100 million dollars (78.9 million euros).
ABP has suit filed at the US federal court in Denver seeking 100 million dollars in damages due to alleged accounting fraud and for not giving proper information to shareholders.
The 150 billion-euro fund is being represented by the Delaware-based firm of Grant and Eisenhof, which specialises in such cases for institutional investors.
ABP spokesman Michel Meijs said the suit covers the period from July 2000 to May 2002.
ABP bought 5.6 million Qwest shares between the two dates, relying on statements from the company. Qwest has restated financial results for 2000 and 2001 and cut revenues by 2.5 billion dollars.
"This case involves one of the largest, and most clear-cut examples of accounting fraud ever uncovered in the United States," the lawsuit said.
It added the phone firm’s accounting scheme was designed to create "the false perception that Qwest was a dynamic, growing company that constantly met or exceeded Wall Street expectations."
"Qwest has no comment on the suit," said a Qwest spokesman.
Qwest has already been sued by shareholders for the same set of claims and a request to turn the case into a class- action lawsuit is pending. The US Securities and Exchange Commission launched an investigation into Qwest in 2002.