legal

legal

Former Qwest CEO Doesn't Testify

Joseph Nacchio, former chief executive of Qwest Communications International, rested his case on insider-trading charges in Denver federal court without testifying in his defense.

Nacchio, 57, chose not to take the witness stand to refute claims that he sold $101 million in Qwest shares in 2001 based on inside information that the firm would not hit revenue targets. Nacchio's lawyers said that he believed in Qwest's public forecasts and that he had to sell options that were set to expire.

Testimony on Scrushy Yacht Trip

HealthSouth founder Richard M. Scrushy, who has been convicted of bribery, took an unauthorized trip to Miami and spent the night on his yacht, two law enforcement officers testified at his bond-revocation hearing. Scrushy is free on bail while he awaits sentencing. Federal prosecutors want him placed in custody for taking the boat trip, saying he's a flight risk.

KB Home Sued Over 401(k) Plans

KB Home disclosed that a lawsuit was filed against it alleging violations of the Employee Retirement Income Security Act related to option backdating. The suit filed last month in a California district court alleges the firm breached its fiduciary duty to participants in the firm's 401(k) retirement program by issuing backdated option grants, according to a filing with the Securities and Exchange Commission.

FOOD

Costlier Tomatoes for McDonald's

McDonald's agreed to pay 1 cent more per pound for its Florida-grown tomatoes to boost wages for the migrant workers who harvest them, following a two-year campaign by an advocacy group that called for the increase. Under the deal, a third party will verify that workers who pick McDonald's tomatoes will get the increase.

MEDIA

Tribune Co. Secures Financing

Publisher Tribune Co. received commitments for $12.2 billion in debt financing to fund billionaire investor Samuel Zell's plan to take it private, according to a filing with the Securities and Exchange Commission. Lenders led by J.P. Morgan Chase agreed to provide a $7.01 billion seven-year term loan, a $263 million delayed-draw term loan and a $750 million six-year revolving credit, Tribune said in the filing.

Times Investors Told Not to Vote

Another advisory firm urged New York Times Co. shareholders to withhold their votes for directors at this month's annual meeting because they are not representing investors' interests. Advisory firm Glass Lewis joined Rockville-based Institutional Shareholder Services in recommending that shareholders not vote for the four directors up for election April 24 in New York.