NY law schools to get windfall
October 10, 2003
Two New York City law schools will share a windfall of $400,000, thanks to a settlement deal by former Qwest Communications CEO Frank Nacchio with state Attorney General Eliot Spitzer to resolve charges of IPO “spinning.”
The disgorgement will help New York Law School and St. John’s School of Law set up clinics to help investors bring claims before securities arbitration panels. Mr. Nacchio neither admitted to nor denied the charges.
Mr. Nacchio and four other telecommunications executives were sued by Mr. Spitzer in September 2002 for alleged IPO spinning—getting shares of hot IPOs in exchange for steering underwriting business to certain investment banks. Earlier this year, former Qwest Chairman Philip Anschutz gave $1.2 million to six New York law schools and $3.2 million to 32 New York nonprofits to settle similar charges.
Copyright 2003, Crain Communications, Inc
