Baer says his department, not outside counsel, had to take primary responsibility for handling the difficult, often tense negotiations with the investors. The company’s survival and the livelihoods of too many people depended on the outcome — people who had nothing to do with Nacchio’s alleged deeds. “It was very important that plaintiffs lawyers understood that the company is made up of people, good people,” Baer says. “We tried to humanize the company as best we could.”
The strategy worked. Qwest settled the suit a year later for $400 million, a mere 1 percent of the original claim. Then Qwest’s lawyers took a deep breath. Investors who had opted out of the settlement filed additional lawsuits alleging nearly $2 billion in damages. So Baer and his most experienced litigator, Stefan Stein, crisscrossed the country last summer to negotiate. Last fall, all the remaining suits were settled for about $410 million.
