June 25, 2010 in Business

Business in brief: Nacchio’s sentence, forfeiture reduced

The Spokesman-Review

DENVER – A federal judge on Thursday cut former Qwest CEO Joseph Nacchio’s insider trading sentence by two months and reduced the amount of money he must forfeit by $7.4 million.

Nacchio was convicted of selling $52 million in Qwest Communications International Inc. stock in 2001 based on nonpublic information that Qwest was in danger of missing its sales forecasts that year.

Nacchio originally was sentenced in 2007 to six years in prison and was ordered to forfeit $52 million, but the 10th U.S. Circuit Court of Appeals ruled last year that the sentence should be recalculated to focus on how much of Nacchio’s profits actually came from having insider information.

The new sentence imposed by U.S. District Judge Marcia Krieger is five years and 10 months with a forfeiture of $44.6 million. Krieger left intact the original fine of $19 million.

Associated Press

Demand soaring

for latest iPhone

LOS ANGELES – Apple loyalists by the thousands waited in lines around the world for the company’s new iPhone on Thursday, in what has become a boisterous tradition for the company’s product launches.

Observers across the nation reported sold-out stores, with lines twice or three times the length they were for previous iPhone launches.

Last week, Apple sold 600,000 phones over the Internet before halting orders because of concerns that demand for the new phone could outstrip supply.

Some analysts are projecting that the company will have sold up to 1 million of the phones by the end of its first day in stores. That compares to 270,000 sold on the first day for the original iPhone in 2007.

Los Angeles Times


From wire reports

•Morgan Stanley agreed to a nearly $103 million settlement with Massachusetts investigators who alleged the investment bank backed subprime mortgage lending that it knew to be risky. State Attorney General Martha Coakley, in announcing the settlement, said it called on Morgan Stanley to provide $60 million to borrowers and the rest to the state treasury and to state agencies that had invested in securities backed by the risky loans.

•A federal judge sentenced Brocade Communications Inc.’s former CEO to 1 1/2 years in prison for failing to disclose – and then covering up – a plan to alter the date of stock option grants so employees could reap greater compensation. U.S. District Judge Charles Breyer also fined Gregory Reyes $15 million. Reyes is to report to prison Sept. 10. Reyes’ lawyers said he is considering an appeal.

•BlackBerry maker Research In Motion Ltd. posted a 20 percent jump in net income for the most recent quarter, but the company’s revenue and subscriber growth disappointed investors. The Canadian company said its net income was $768.9 million, or $1.38 per share, in the fiscal first quarter, which ended May 29. That’s up from $643 million, or $1.12 per share, a year earlier. Analysts surveyed by Thomson Reuters expected $1.34 per share.

•ConAgra Foods Inc., which makes Banquet, Chef Boyardee, Healthy Choice and other foods, said its fourth-quarter net income fell 48 percent, hurt by restructuring and impairment charges and falling revenue, especially from commercial clients.

•Oracle Corp.’s net income for the most recent quarter jumped 25 percent on stronger sales of database and other business software and a bump from the acquisition of Sun Microsystems.

•H&R Block Inc. said a weak tax season led to a 2 percent decline in its fiscal fourth-quarter net income.

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