NOVEMBER 2011 - Level 3 Communications Inc. agreed to a $3.2 million to settle a putative class action claiming it negligently managed its employees' retirement plan.
MAY 2009 - An employee, who participated in the Level 3 Communication’s 401K retirement plan, has filed in the District of Colorado a proposed class action lawsuit on behalf of certain former and current employees of Level 3 Communications, Inc, who participated in the company plan, over alleged breaches of certain fiduciaries of the Plan.
According to the complaint the plaintiff alleges that the violations of the Employee Retirement Income Security Act of 1974 may have occurred in at least two ways, by either continuing to offer Level 3 common stock as a Plan investment when it was imprudent to do so, and/or by maintaining the Plan's investment in Level 3 stock in the Plan when it was imprudent to do so. According to the complaint filed in the District of Colorado, defendants misled Plan Participants regarding its successful integration of companies it acquired from late 2005 through early 2007. The complaint alleges Level 3 Communications, Inc was having extreme difficulties in integration because of, among other things, increased service activation times and difficulties in the Company's service management processes. According to the complaint, as a result of these problems, Level 3 Communications, Inc had inadequate provisioning capability to convert its signed orders into revenue generating service.
Level 3 Communications, Inc is also subject of a securities class actions lawsuit on behalf of investors in shares of Level 3 Communications, Inc. (NASDAQ: LVLT) pending in the U.S. District of Colorado. On February 02, 2009 a shareholder of Level 3 Communications, Inc. (NASDAQ: LVLT) has filed a proposed securities class action lawsuit in the United States District Court for the District of Colorado on behalf of purchasers of Level 3 Communications, Inc. (NASDAQ: LVLT) common stock during the period between February 8, 2007 and October 23, 2007 over alleged violations of Federal Securities Laws by Level 3 Communications, Inc. According to the investors complaint the plaintiff alleges that Level 3 Communications, Inc. (NASDAQ: LVLT) and certain of its officers and directors violated the Securities Exchange Act of 1934. The complaint alleges that the representations contained in Level 3’s press releases, SEC filings, conference calls, and presentations between February 8, 2007 and October 23, 2007 were materially false and misleading. Specifically, so the investors complaint, on October 23, 2007, Level 3 issued a press release announcing its financial results for the third quarter of 2007, the period ending September 30, 2007, and reported for the quarter a consolidated revenue of $1.061 billion. Level 3 further reported that its core communications services revenue was negatively impacted by provisioning issues. In response to the announcements, so the lawsuit, the price of Level 3 stock (NASDAQ: LVLT) declined from $4.32 per share to $3.18 per share on October 24, 2007, on extremely heavy trading volume.