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Hell hath no fury like an investor scorned. In an ongoing effort to recoup an estimated $184 million in stock losses, the California State Teachers’ Retirement System (CalSTRS) has sued WorldCom, Inc., Homestore, Inc., and now Qwest Communications International Inc. The latest suit, filed in December in San Francisco state court, claims that Qwest committed fraud by lying about its financial health. Seven individuals (including ousted CEO Joseph Nacchio and founder Philip Anschutz), eight investment banks, and auditor Arthur Andersen LLP are also named as defendants in the suit. CalSTRS is the country’s third-largest public pension fund, with $94 billion in assets and more than 715,000 teachers and retirees. It estimates that it lost $150 million on its Qwest investment. According to CalSTRS general counsel Christopher Waddell, the losses were so large that the fund decided to file a claim under California’s unfair practices law rather than join an existing class action brought against Qwest in the company’s home state of Colorado. Qwest has admitted to overstating its 2000 and 2001 revenue by $1.86 billion. The company says it will aggressively defend itself against the CalSTRS suit. Selected defendants are listed below. For California State Teachers’ Retirement System (Sacramento) In-house: General counsel Christopher Waddell. Cotchett, Pitre, Simon & McCarthy (Burlingame, California): Joseph Cotchett, Bruce Simon, and associates Nancy Fineman, Nanci Nishimura, and Steven Williams. Girard Gibbs & De Bartolomeo (San Francisco): A.J. De Bartolomeo, Daniel Girard, and associates Amelia Burroughs and Gordon Fauth. Law Offices of Anthony K. Lee (San Francisco): Anthony Lee. Cotchett and Girard are teaming up for the first time after winning a beauty contest in November. CalSTRS decided to use all three to ensure sufficient resources. Cotchett is also working on the Homestore suit. For defendant Qwest Communications International Inc. (Denver) In-house: Senior vice president and deputy general counsel Stefan Stein. Boies, Schiller & Flexner (Armonk, New York): David Boyd, Kirsten Gillibrand, Steven Holtzman, Alfred Levitt, Jonathan Schiller, David Shapiro, of counsel Adam Shaw, and associates Alexa Bator, Ellen Blanchard, Stephen Cohen, William Jackson, Kenneth Rossman IV, and Alice Yao. (Boyd, Levitt, Schiller, Blanchard, Cohen, Jackson, and Yao are in the firm’s Washington, D.C., office; Gillibrand and Bator are in New York; Holtzman and Shapiro are in Oakland; Shaw is in Albany; and Rossman is in Denver.) The firm has handled previous matters for Qwest. For defendant Philip Anschutz (Denver) Holme Roberts & Owen (Denver): Bruce Black and associate Michael Hofmann. Kellogg, Huber, Hansen, Todd & Evans (Washington, D.C.): Neil Gorsuch and Mark Hansen. For defendant Joseph Nacchio (Denver) Stillman & Friedman (New York): Scott Himes, Charles Stillman, and associate Kimo Peluso. Outlook At press time a response date for defendants had not yet been set. — Heather Smith

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