Morvillo Abramowitz Wins Dismissal in the S.E.C. Case Against Former Qwest President & COO, Afshin Mohebbi
March 31, 2011
After six years of hard-fought litigation against the S.E.C., on March 31, 2011 Morvillo Abramowitz, led by Partner Paul R. Grand, achieved an outstanding result for Afshin Mohebbi, the former President and Chief Operating Officer of Qwest Communications International, Inc.– a complete dismissal of the S.E.C.’s case against Mr. Mohebbi. The firm has defended Mr. Mohebbi since the onset of the S.E.C.’s investigation into Qwest’s financial disclosures and throughout the S.E.C. enforcement action filed against Mr. Mohebbi in March 2005.
The S.E.C. alleged that Mr. Mohebbi and others overstated revenue and failed to disclose Qwest’s reliance on sales of indefeasible rights of use, or IRUs. In March 2010, the firm won a partial dismissal from the Honorable Marcia S. Krieger of the United States District Court of Colorado, who dismissed six out of eight claims against Mr. Mohebbi, finding that the alleged overstatements of revenue were “not due to any misconduct on Mr. Mohebbi’s part.” A year later to the day, Judge Krieger issued an opinion dismissing the S.E.C.’s remaining claims against Mr. Mohebbi, finding “that the SEC has come forward with no evidence demonstrating Mr. Mohebbi’s substantial assistance to Qwest’s failure to disclose details of the IRU revenue,” and ordered Mr. Mohebbi’s name removed from the caption of the case. “The simple fact is that Afshin Mohebbi was an exemplary executive who never should have been sued,” said Mr. Grand. Morvillo Abramowitz Associate Jasmine Juteau also represented Mr. Mohebbi in this matter.