Ex-Qwest CEO Nacchio wins $14 million verdict vs Goldman unit, law firm says
Reuters
Published Jan 07, 2016 06:49PM ET
Updated Jan 07, 2016 07:00PM ET
Ex-Qwest CEO Nacchio wins $14 million verdict vs Goldman unit, law firm says
(Reuters) - Joseph Nacchio, the former Qwest Communications International [CTLQW.UL] chief executive, has won a $14.2 million jury verdict against a Goldman Sachs Group Inc (N:GS) unit and financial adviser over the sale of life insurance policies, his law firm said on Thursday.
Nacchio and his wife said Goldman's Ayco financial planning unit and their former adviser David Weinstein breached their fiduciary duties by failing to tell them that the $95 million of variable life insurance they bought in 2000 would likely lapse before their life expectancies, the law firm Nagel Rice said.
The couple was forced as a result to cancel their policies and pay $26 million in premiums to replace them, the firm said.
"We are disappointed with the verdict and plan to appeal," Ayco spokesman Brian Cuneo said. A lawyer for Weinstein could not immediately be reached for comment.
Bruce Nagel, a lawyer for the Nacchios, in a statement said the Morristown, New Jersey jury awarded everything his clients sought after a month-long trial. Nagel could not immediately be reached for additional comment.
Nacchio, 66, spent roughly five years in prison after being convicted in 2007 of insider trading. He was also ordered to pay more than $63 million in fines and forfeiture, court records show.
Qwest was a U.S. regional phone company based in Denver before it merged in April 2011 with CenturyLink Inc (N:CTL).
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.