Qwest Communications International signed agreements that a law firm alleges artificially inflated the company's revenues while it was trying to close its merger with US West.
The law firm, Milberg Weiss Bershad Hynes and Lerach, has filed a federal lawsuit citing Qwest agreements to buy and sell capacity on fiber optic networks, including some deals that are now under federal scrutiny.
The firm alleges Qwest was artificially boosting revenues through the deals and, in turn, its stock, in order to acquire US West.
A trial is not expected until 2004. Qwest spokesman Steve Hammack says the company and its auditors are doing their own internal reviews.