Nacchio Wins Appeal for New Trial

Joe Nacchio, Qwest Communications International Inc.’s former CEO, is getting a new trial.

A federal appeals court on Monday said the trial judge last year wrongly excluded testimony that was critical to Nacchio’s defense.

A jury convicted Nacchio in April 2007 on 19 counts of insider trading. He was found guilty of selling $52 million worth of Qwest stock in 2001, but was acquitted of 23 other counts. Nacchio was sentenced to six years in prison, but has remained free on appeal.

Nacchio’s attorneys argued in front of an appeals court in December on his behalf. And even though the news today was good for Nacchio, he still faces a civil fraud lawsuit filed by the Securities and Exchange Commission (SEC).

The SEC accuses Nacchio and four other former Qwest employees of financial fraud that led to the improper reporting of approximately $3 billion in sales. Qwest later had to restate those numbers and write off $2.2 billion.

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