Free Answer to Amended Complaint - District Court of Colorado - Colorado

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO

Civil Case No. 04-cv-0782-REB-CBS TEACHERS' RETIREMENT SYSTEM OF LOUISIANA, the Retirement System for Teachers employed by the State of Louisiana, Plaintiff, v. QWEST COMMUNICATIONS INTERNATIONAL INC., a Delaware Corporation having its principal office and place of business in Denver, et al., Defendants.

BRYAN K. TREADWAY'S ANSWER TO PLAINTIFF'S AMENDED COMPLAINT

Defendant Bryan K. Treadway ("Treadway") respectfully submits the following Answer to Plaintiff's Amended Complaint ("Complaint"), filed July 26, 2004. Treadway has attempted to answer the Complaint within the letter and spirit of the Federal Rules of Civil Procedure and in a manner consistent with the Court's September 23, 2005 Order. Treadway notes that the Complaint contains numerous allegations not directed to Treadway, including allegations regarding events that occurred before Treadway's brief thirteen month tenure at Qwest even began. By

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answering the Complaint, Treadway does not concede that any of the Complaint's allegations are proper bases of liability or foundations for discovery against him.
1.

Treadway states that the Complaint speaks for itself. Treadway lacks

knowledge or information sufficient to form a belief as to the truth or falsity of Plaintiff's allegations regarding the basis of the Complaint and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 1.
2.

Treadway states that the Complaint speaks for itself. Treadway

denies the remaining allegations of Paragraph 2.
3.

Treadway admits that he did not serve a responsive pleading to the

original complaint prior to Plaintiff's filing of this Complaint, nor has he filed a motion for summary judgment in this action. Treadway lacks knowledge or information sufficient for form a belief as to the truth or falsity of these allegations as to the other defendants and, therefore, denies these allegations.
4.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
5.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
6.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.

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7.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
8.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
9.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
10.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
11.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
12.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
13.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
14. 15.

Admitted. Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
16.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.

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17.

Treadway denies the allegations contained in Paragraph 17 to the

extent the allegations imply any wrongdoing on the part of Treadway. Otherwise, Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations and, therefore, denies these allegations.
18.

Treadway states that the Complaint speaks for itself. Treadway

incorporates by reference, as if fully set forth herein, his responses to the jurisdiction and venue allegations set forth in the Counts of the Complaint. Treadway denies the remaining allegations of Paragraph 18.
19.

Treadway states that the Complaint speaks for itself. Treadway

denies any wrongdoing on his part and denies that he is indebted to Plaintiffs in any way or for any amount. Treadway denies the remaining allegations of paragraph 19.
20.

Treadway states that the allegations in Paragraph 20 constitute legal

conclusions to which no response is required. To the extent a response is required, Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations and, therefore, denies these allegations.
21.

In response to the allegations contained in the first sentence,

Treadway denies that he committed any wrongdoing connected with any allegedly false and misleading financial information relating to the defendant Qwest. In response to the allegations contained in the second sentence, Treadway denies that

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he participated in, while acting within the scope of his employment, the dissemination of allegedly false and misleading financial reports of defendant Qwest. Treadway states that the Complaint speaks for itself. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. In response to the allegations contained in the third sentence, Treadway admits that, while he was an employee at Qwest, financial information was disseminated to the marketplace. Treadway denies the remaining allegations of Paragraph 21.
22.

Treadway admits that, during the time he was an employee at Qwest,

information from defendant Qwest's financial reports was disseminated through press releases and other means and that certain Qwest financial reports were filed with the United States Securities and Exchange Commission. Treadway lacks knowledge or information sufficient to admit or deny the remaining allegations of Paragraph 22 and, therefore, denies these allegations.
23.

Treadway states that the Complaint speaks for itself. Treadway

denies that he committed any wrongful acts attributed to him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Regarding Qwest's alleged liability for acts of individual

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defendants, Treadway states that these allegations constitute legal conclusions to which no response is required. To the extent a response is required, Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 23.
24.

In response to the allegations contained in the first sentence,

Treadway denies that he committed any wrongful acts attributed to him in the Complaint and denies that he concealed any allegedly wrongful acts. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the allegations contained in the second sentence. Treadway denies the remaining allegations of Paragraph 24.
25.

Treadway denies that he committed any wrongful acts attributed to

him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Regarding the alleged tolling of the applicable statute of limitations, Treadway states that these allegations constitute legal conclusions to which no response is required. Treadway denies the remaining allegations of Paragraph 25.

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26.

Treadway states that the allegations of Paragraph 26 constitute legal

conclusions to which no response is required. To the extent a response is required, Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations and, therefore, denies these allegations.
27.

In response to the allegations contained in Paragraph 27, Treadway

states that he is a named defendant and has been served with the Complaint in this action and in the action styled Shriners Hospital for Children v. Qwest Communications International, Inc., et al., Civil Case No. 04-RB-781 (CBS), pending before this Court. Treadway states that he is not presently a defendant in any other action related to defendant Qwest, or in any event has not been served with any such action. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 27.
28.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
29.

In response to the allegations contained in Paragraph 29, Treadway

states that he is a named defendant and has been served with the Complaint in this action and in the action styled Shriners Hospital for Children v. Qwest Communications International, Inc., et al., Civil Case No. 04-RB-781 (CBS),

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pending before this Court. Treadway states that he is not presently a defendant in any other action related to defendant Qwest, or in any event has not been served with any such action. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 29.
30.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
31. 32. 33.

Admitted. Admitted. Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
34.

Treadway denies that there is any action pending against him brought

by the United States Securities and Exchange Commission. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations.
35.

In response to the allegations contained in Paragraph 35, Treadway

admits that a Colorado jury unanimously acquitted him of any wrongdoing on April 16, 2004 in the matter of United States v. Graham, et al., Criminal Case No.

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03-CR-089-RB. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations.
36.

Treadway denies that he committed any wrongful acts attributed to

him in the Complaint and denies that he concealed any allegedly wrongful acts. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 36.
37.

In response to the allegations contained in Paragraph 37, Treadway

states that any alleged article in the Wall Street Journal speaks for itself. Regarding whether any such article constituted sufficient notice to plaintiff, such allegations constitute legal conclusions to which no response is required. To the extent a response is required, Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations and, therefore, denies the allegations. Treadway denies that he committed any wrongful acts attributed to him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 37.

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38.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
39.

In response to the allegations contained in Paragraph 39, Treadway

states that he has been dismissed from the action styled United States Securities and Exchange Commission v. Arnold, et al., Civil Case No. 03-RB-0328 (OES), filed on February 25, 2003. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 39.
40.

In response to the allegations contained in Paragraph 40, Treadway

denies that he committed any wrongful acts attributed to him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations of Paragraph 40 and, therefore, denies these allegations.
41.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
42.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
43.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.

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44.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
45.

Treadway denies that he committed any wrongful acts attributed to

him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations of Paragraph 45 and, therefore, denies these allegations.
46.

Treadway denies that he committed any wrongful acts attributed to

him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. As an accountant at Qwest, Treadway denies that he was required to report specific amounts and/or percentages of revenue growth. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 46.
47.

As an accountant at Qwest, Treadway denies he was personally

required to meet any previously directed targets of revenues and revenue growth. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore,

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denies these allegations. Treadway denies the remaining allegations of Paragraph 47.
48.

As an accountant at Qwest, Treadway denies that he was informed

that he could face dismissal if Qwest's financial reports did not meet any alleged targets. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 48.
49.

Treadway denies that he issued false and/or misleading financial

information as may be attributed to him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations of Paragraph 49 and, therefore, denies these allegations. Upon information and belief, Treadway admits that after he left Qwest in May 2001 Qwest restated certain financial statements that were issued during the time that Treadway was an employee of Qwest. Treadway states that said restatement speaks for itself.
50.

Treadway denies that he committed any wrongful acts attributed to

him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations.

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51.

Treadway denies that he committed any wrongful acts attributed to

him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations of Paragraph 51 and, therefore, denies these allegations.
52.

Treadway denies that he committed any wrongful acts attributed to

him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Regarding punitive damages, Treadway states that these allegations constitute legal conclusions to which no response is required. To the extent a response is required, Treadway denies these allegations. Treadway denies the remaining allegations of Paragraph 52.
53.

Treadway denies that he committed any wrongful acts attributed to

him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations in Paragraph 53 and, therefore, denies these allegations.
54.

Treadway states that the allegations of Paragraph 54 are not directed

to him and, therefore, no response is required.
55.

To the extent that by use of the term "foregoing" plaintiff intends to

restate its allegations contained in Paragraphs 1 through 54, Treadway incorporates

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by reference as if fully set forth herein his responses to Paragraph 1 through 54. Treadway denies the remaining allegations of Paragraph 55.
56.

Treadway denies that he committed any wrongful acts attributed to

him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations in Paragraph 56 and, therefore, denies these allegations.
57.

Treadway lacks knowledge or information sufficient form a belief as

to the truth or falsity of the allegations contained in Paragraph 57 and, therefore, denies these allegations.
58.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 58 and, therefore, denies these allegations.
59.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 59 and, therefore, denies these allegations.
60.

To the extent that by use of the term "aforesaid" plaintiff intends to

restate its allegations contained in Paragraphs 1 through 59, Treadway incorporates by reference as if fully set forth herein his responses to Paragraph 1 through 59. Treadway denies that committed any wrongful acts attributed to him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief

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as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 60.
61.

Treadway admits that, while he was an employee of Qwest, Qwest

provided, among other things, telecommunications and internet services to its customers. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations as they relate to times when he was not an employee and, therefore, denies the allegations.
62.

In response to the allegations contained in Paragraph 62, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway admits, upon information and belief, that the merger of U.S. West and Qwest was consummated on June 30, 2000. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations of Paragraph 62 and, therefore, denies these allegations.
63.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations of Paragraph 63 and, therefore, denies these allegations.
64.

In response to the allegations contained in Paragraph 64, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway denies that he committed any wrongful act attributed to him

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in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 64 and, therefore, denies these allegations.
65.

In response to the allegations contained in Paragraph 65, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 65 and, therefore, denies these allegations. Treadway states that "the above documents" speak for themselves.
66.

In response to the allegations contained in Paragraph 66, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 66 and, therefore, denies these allegations. Treadway states that "[t]he press release and 10-Q report" speak for themselves.
67.

In response to the allegations contained in Paragraph 67, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway denies that he committed any wrongful act attributed to him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 67 and, therefore, denies these allegations.

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68.

In response to the allegations contained in Paragraph 68, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 68 and, therefore, denies these allegations. Treadway states that "[t]he press and 10-Q report" speak for themselves.
69.

In response to the allegations contained in Paragraph 69, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway denies that he committed any wrongful act attributed to him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 69 and, therefore, denies these allegations.
70.

In response to the allegations contained in Paragraph 70, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 70 and, therefore, denies these allegations. Treadway states that "[t]he 10-K report" speaks for itself.
71.

In response to the allegations contained in Paragraph 71, Treadway

denies that he committed any wrongdoing in connection with an alleged press release dated April 24, 2001 and/or a 10-Q report filed with the SEC on May 15,

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2001. Treadway states that such press release and 10-Q report speak for themselves. Treadway denies the remaining allegations of Paragraph 71.
72.

In response to the allegations contained in Paragraph 72, Treadway

denies that he committed any wrongdoing in connection with an alleged press release dated April 24, 2001 and/or a 10-Q report filed with the SEC on May 15, 2001. Treadway states that such press release and 10-Q report speak for themselves. Treadway denies the remaining allegations of Paragraph 72.
73.

In response to the allegations contained in Paragraph 73, Treadway

denies that he committed any wrongdoing in connection with an alleged press release dated July 24, 2001 and/or a 10-Q report filed with the SEC on August 14, 2001. Treadway states that such press release and 10-Q report speak for themselves. Treadway denies the remaining allegations of Paragraph 73.
74.

In response to the allegations contained in Paragraph 74, Treadway

denies that he committed any wrongdoing in connection with an alleged press release dated July 24, 2001 and/or a 10-Q report filed with the SEC on August 14, 2001. Treadway states that such press release and 10-Q report speak for themselves. Treadway denies the remaining allegations of Paragraph 74.
75. In response to the allegations contained in Paragraph 75, Treadway denies

that he committed any wrongdoing in connection with an alleged press release dated October 31, 2001 and/or a 10-Q report filed with the SEC on November 14, 2001.

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Treadway states that such press release and 10-Q report speak for themselves. Treadway denies the remaining allegations of Paragraph 75. 76.

In response to the allegations contained in Paragraph 76, Treadway

states that "the above documents" speak for themselves. Treadway denies the remaining allegations of Paragraph 76.
77.

In response to the allegations contained in Paragraph 77, Treadway

denies that he committed any wrongdoing in connection with an alleged press release dated January 29, 2002. Treadway states that such press release speaks for itself. Treadway denies the remaining allegations of Paragraph 77.
78.

In response to the allegations contained in Paragraph 78, Treadway

denies that he committed any wrongdoing in connection with an alleged press release dated January 24, 2002. Treadway states that such press release speaks for itself. Treadway denies the remaining allegations of Paragraph 78.
79.

Treadway states that any alleged Wall Street Journal article dated

February 13, 2002 speaks for itself. Treadway denies that he implemented or carried out any mechanism to improperly enhance Qwest's financial results. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 79.

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80.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations regarding the reasons for an alleged "precipitous drop" in the price of Qwest common stock and the reasons for an investigation by the SEC and, therefore, denies these allegations. Regarding the SEC complaint filed on February 25, 2003, Treadway states that such complaint has been dismissed as to him. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 80.
81.

Regarding the allegations contained in the first sentence of Paragraph

81, Treadway states that such allegations are not directed to him and, therefore, no response is required. To the extent a response is required, Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations and, therefore, denies the allegations. Regarding the allegations in the second sentence of Paragraph 81, Treadway denies that he committed any wrongful act attributed to him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 81.

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82.

Treadway denies that he committed any wrongful act attributed to him

in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 82.
83.

Treadway admits that, while he was an employee of Qwest, the

allegations contained in the first sentence of Paragraph 83 were true. Treadway lacks information or knowledge sufficient to form a belief as to the truth or falsity of the allegations contained in the second and third sentences of Paragraph 83 and, therefore, denies these allegations.
84.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 84 and, therefore, denies these allegations.
85.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
86.

As an accountant at Qwest, Treadway denies that he was required to

follow rigid and inflexible revenue objectives. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 86.

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87.

As an accountant at Qwest, Treadway denies that his superiors exerted

extreme pressure on him to meet or exceed revenue projections at all costs. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 87.
88.

As an accountant at Qwest, Treadway denies that he was personally

required to meet any revenue growth projections made by senior management and denies that the failure to meet those projections could lead to his dismissal. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 88.
89.

In response to the allegations contained in Paragraph 89, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 89 and, therefore, denies these allegations.
90.

In response to the allegations contained in Paragraph 90, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through

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May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 90 and, therefore, denies these allegations.
91.

Treadway states that the allegations contained in Paragraph 91

constitute a vague and ambiguous incomplete statement to which no response is required. To the extent a response is required, Treadway denies the allegations.
92.

In response to the allegations contained in Paragraph 92, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 92 and, therefore, denies these allegations.
93.

In response to the allegations contained in Paragraph 93, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 93 and, therefore, denies these allegations.
94.

In response to the allegations contained in Paragraph 94, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as

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to the truth or falsity of the allegations of Paragraph 94 and, therefore, denies these allegations.
95.

In response to the allegations contained in Paragraph 95, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 95 and, therefore, denies these allegations.
96.

In response to the allegations contained in Paragraph 96, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 96 and, therefore, denies these allegations.
97.

In response to the allegations contained in Paragraph 97, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 97 and, therefore, denies these allegations.
98.

In response to the allegations contained in Paragraph 98, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as

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to the truth or falsity of the allegations of Paragraph 98 and, therefore, denies these allegations.
99.

In response to the allegations contained in Paragraph 99, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 99 and, therefore, denies these allegations.
100.

In response to the allegations contained in Paragraph 100, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 100 and, therefore, denies these allegations.
101.

In response to the allegations contained in Paragraph 101, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 101 and, therefore, denies these allegations.
102.

In response to the allegations contained in Paragraph 102, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as

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to the truth or falsity of the allegations of Paragraph 102 and, therefore, denies these allegations.
103.

In response to the allegations contained in Paragraph 103, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 103 and, therefore, denies these allegations.
104.

In response to the allegations contained in Paragraph 104, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 104 and, therefore, denies these allegations.
105.

In response to the allegations contained in Paragraph 105, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 105 and, therefore, denies these allegations.
106.

In response to the allegations contained in Paragraph 106, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as

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to the truth or falsity of the allegations of Paragraph 106 and, therefore, denies these allegations.
107.

In response to the allegations contained in Paragraph 107, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 107 and, therefore, denies these allegations.
108.

In response to the allegations contained in Paragraph 108, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 108 and, therefore, denies these allegations.
109.

In response to the allegations contained in Paragraph 109, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 109 and, therefore, denies these allegations.
110.

In response to the allegations contained in Paragraph 110, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as

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to the truth or falsity of the allegations of Paragraph 110 and, therefore, denies these allegations.
111.

In response to the allegations contained in Paragraph 111, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 111 and, therefore, denies these allegations.
112.

In response to the allegations contained in Paragraph 112, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 112 and, therefore, denies these allegations.
113.

In response to the allegations contained in Paragraph 113, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 113 and, therefore, denies these allegations.
114.

In response to the allegations contained in Paragraph 114, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as

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to the truth or falsity of the allegations of Paragraph 114 and, therefore, denies these allegations.
115.

In response to the allegations contained in Paragraph 115, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 115 and, therefore, denies these allegations.
116.

In response to the allegations contained in Paragraph 116, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 116 and, therefore, denies these allegations.
117.

In response to the allegations contained in Paragraph 117, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 117 and, therefore, denies these allegations.
118.

In response to the allegations contained in Paragraph 118, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as

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to the truth or falsity of the allegations of Paragraph 118 and, therefore, denies these allegations.
119.

In response to the allegations contained in Paragraph 119, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 119 and, therefore, denies these allegations.
120.

In response to the allegations contained in Paragraph 120, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 120 and, therefore, denies these allegations.
121.

Treadway admits the allegations contained in the first sentence of

Paragraph 121. In response to the remaining allegations of Paragraph 121, Treadway states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 121 and, therefore, denies these allegations.
122.

In response to the allegations contained in Paragraph 122, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through

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May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 122 and, therefore, denies these allegations.
123.

In response to the allegations contained in Paragraph 123, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 123 and, therefore, denies these allegations.
124.

In response to the allegations contained in Paragraph 124, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 124 and, therefore, denies these allegations.
125.

In response to the allegations contained in Paragraph 125, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 125 and, therefore, denies these allegations.
126.

In response to the allegations contained in Paragraph 126, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through

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May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 126 and, therefore, denies these allegations.
127.

In response to the allegations contained in Paragraph 127, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 127 and, therefore, denies these allegations.
128.

In response to the allegations contained in Paragraph 128, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 128 and, therefore, denies these allegations.
129.

In response to the allegations contained in the first sentence of

Paragraph 129, Treadway states that the generally accepted accounting principles governing bill and holding accounting treatment are contained in the accounting literature, including SAB 101, and that such literature speaks for itself. Treadway denies these allegations to the extent they misquote, mischaracterize, or are otherwise inconsistent with the literature. Treadway admits the allegations contained in the first sentence of Paragraph 129. In response to the remaining

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allegations contained in Paragraph 129, Treadway states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations of Paragraph 129 and, therefore, denies these allegations.
130.

In response to the allegations contained in Paragraph 130, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 130 and, therefore, denies these allegations.
131.

In response to the allegations contained in Paragraph 131, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 131 and, therefore, denies these allegations.
132.

In response to the allegations contained in Paragraph 132, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 132 and, therefore, denies these allegations.

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133.

In response to the allegations contained in Paragraph 133, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 133 and, therefore, denies these allegations.
134.

In response to the allegations contained in Paragraph 134, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 134 and, therefore, denies these allegations.
135.

In response to the allegations contained in Paragraph 135, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 135 and, therefore, denies these allegations.
136.

In response to the allegations contained in Paragraph 136, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 136 and, therefore, denies these allegations.

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137.

In response to the allegations contained in Paragraph 137, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 137 and, therefore, denies these allegations.
138.

In response to the allegations contained in Paragraph 138, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 138 and, therefore, denies these allegations.
139.

In response to the allegations contained in Paragraph 139, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 139 and, therefore, denies these allegations.
140.

In response to the allegations contained in Paragraph 140, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 140 and, therefore, denies these allegations.

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141.

In response to the allegations contained in Paragraph 141, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 141 and, therefore, denies these allegations.
142.

In response to the allegations contained in Paragraph 142, Treadway

states that he was employed for thirteen months at Qwest, from April 2001 through May 2002. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the allegations of Paragraph 142 and, therefore, denies these allegations.
143.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 143 and, therefore, denies these allegations.
144.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 144 and, therefore, denies these allegations.
145.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 145 and, therefore, denies these allegations.

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146.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 146 and, therefore, denies these allegations.
147.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 147 and, therefore, denies these allegations.
148.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 148 and, therefore, denies these allegations.
149.

Treadway denies that he was a knowing participant in any unlawful

plan or scheme to separate the equipment sale from the installation service portion of the ASFB contract, the acceleration of the delivery of equipment, and/or the characterization of the agreement as a "bill and hold" transaction. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 149.
150.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 150 and, therefore, denies these allegations.

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151.

Treadway denies that he decided to separate the equipment sale from

the other parts of the ASFB contract. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations.
152.

Treadway denies that he fraudulently characterized the transaction as

a "bill and hold" transaction so that immediate revenue recognition could be made. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 152.
153.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
154.

In response to the allegations contained in Paragraph 154, Treadway

admits that the requirements to support "bill-and-hold" accounting treatment for a transaction and related immediate revenue recognition are set forth in the accounting literature, including SAB 101, and states that such literature, including SAB 101, speaks for itself. Treadway admits that the allegations of Paragraph 154 include some of the major points reflected in the accounting literature. Treadway denies the allegations of Paragraph 154 to the extent they misquote, mischaracterize, or are otherwise consistent with the accounting literature.

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155. 156. 157.

Admitted. Denied. In response to the allegations contained in Paragraph 157, Treadway

admits that on June 23, 2001 he authored an e-mail to Jim Kurtz, with a copy to Mark Schumacher and Jenni Black, and states that the e-mail speaks for itself. Treadway denies the allegations of Paragraph 157 to the extent that they misquote, mischaracterize, or are inconsistent with his June 23, 2001 e-mail. Treadway denies the remaining allegations of Paragraph 157.
158.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 158 and, therefore, denies these allegations.
159.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 159 and, therefore, denies these allegations.
160.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 160 and, therefore, denies these allegations.
161.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 161 and, therefore, denies these allegations.

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162.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 162 and, therefore, denies these allegations.
163.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 163 and, therefore, denies these allegations.
164.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 164 and, therefore, denies these allegations.
165.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 165 and, therefore, denies these allegations.
166.

In response to the allegations contained in Paragraph 166, Treadway

states that the generally accepted accounting principles governing bill-and-hold accounting contained in the literature, including SAB 101, speaks for itself and Treadway denies the allegations of Paragraph 166 to the extent they misquote, mischaracterize or are inconsistent with that literature.
167.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 167 and, therefore, denies these allegations.

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168. 169.

Denied. In response to the allegations contained in Paragraph 169, Treadway

admits that on June 20, 2001 Hall forwarded to Arnold an e-mail purporting to recount a conversation between Treadway and another accountant regarding, among other things, risk of loss and proposed payment terms. Treadway denies the allegations of Paragraph 169 to the extent that they misquote, mischaracterize, or are inconsistent with the June 20, 2001 e-mail. Treadway denies the remaining allegations of Paragraph 169.
170.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 170 and, therefore, denies these allegations.
171.

Treadway denies the allegations as they relate to himself. Treadway

lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 171.
172.

Treadway admits that an ASFB official signed a letter dated June 27,

2001 that purported to state the ASFB's reasons for wanting to purchase the equipment listed on Exhibit A to the letter and for storing the equipment at a Qwest facility in Arizona. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations of Paragraph 172 to the

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extent they misquote, mischaracterize, or are inconsistent with the June 27, 2001 letter and, therefore, denies these allegations. Treadway denies the remaining allegations in Paragraph 172.
173.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 173 and, therefore, denies these allegations.
174.

Treadway admits, upon information and belief, that an ASFB official

signed a letter purporting to be from Tom Hall dated June 29, 2001. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations of Paragraph 174 to the extent that they misquote, mischaracterize, or are inconsistent with the June 29, 2001 letter and, therefore, denies these allegations. Treadway denies the remaining allegations of Paragraph 174.
175.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Paragraph 175 and, therefore, denies these allegations.
176.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.
177.

In response to the allegations contained in Paragraph 177, Treadway

admits that he regularly consulted with Qwest's outside auditor in connection with

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the transaction with ASFB, both before and after June 30, 2001. Treadway further admits that an accountant working for Qwest's outside auditor sent Treadway an email dated July 11, 2001 stating that certain legal documents needed to be effective prior to quarter-end, i.e. June 30, 2001. Treadway denies the remaining allegations of Paragraph 177.
178. 179.

Denied. In response to the allegations contained in Paragraph 179, Treadway

admits, upon information and belief, that, after June 30, 2001, an ASFB official signed a letter to Tom Hall dated July 2, 2001 and that Tom Hall signed a letter to an ASFB official dated July 11, 2001. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations of Paragraph 179 and, therefore, denies these allegations.
180.

Treadway admits, upon information and belief, that an ASFB official

signed a letter to Tom Hall dated July 2, 2001. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations of Paragraph 180 to the extent they misquote, mischaracterize, or are inconsistent with the July 2, 2001 letter and, therefore, denies these allegations.
181.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of these allegations and, therefore, denies these allegations.

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182.

Treadway admits, upon information and belief, that Tom Hall signed a

letter to an ASFB official dated July 11, 2001. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations of Paragraph 182 to the extent they misquote, mischaracterize, or are inconsistent with the July 11, 2001 letter and, therefore, denies these allegations.
183.

In response to the allegations contained in the second sentence of

Paragraph 183 regarding who maintained the risk of loss on equipment referenced in the July 11, 2001 letter, such allegations constitute a legal conclusion to which no response is required. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations of Paragraph 183 and, therefore, denies these allegations.
184.

In response to the allegations contained in Paragraph 184, Treadway

admits that accountants at Qwest discovered in December 2001 that ASFB was not making payments in accordance with the schedule outlined in the letter dated June 29, 2001. Treadway denies the remaining allegations of Paragraph 184.
185.

In response to the allegations contained in Paragraph 185, Treadway

admits that Qwest concluded that the upfront revenue recognized in Q2 2001 based on the equipment sale to ASFB was improper. Treadway denies that Qwest came to this conclusion only after conducting an internal investigation. Treadway lacks

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knowledge or information sufficient to form a belief as to the truth or falsity of the remaining allegations of Paragraph 185 and, therefore, denies these allegations.
186. 187. 188.

Denied. Admitted. Treadway denies that he committed any wrongful acts attributed to

him in the Complaint. Treadway lacks knowledge or information sufficient to form a belief as to the truth or falsity of these allegations as they relate to other defendants and, therefore, denies these allegations. The allegations regarding Qwest's liability constitute legal conclusions to which no response is required. Treadway denies the remaining allegations of Paragraph 188.
189.

Treadway lacks knowledge or information sufficient to form a belief

as to the truth or falsity of the allegations contained in Parag