GRAND v. NACCHIO

No. CV-09-0317-PR.

236 P.3d 398 (2010)

Richard GRAND and Marcia Grand, co-trustees of the R.M. Grand Revocable Living Trust, dated January 25, 1991, Plaintiffs/Appellants/Cross-Appellees, v. Joseph P. NACCHIO, a New Jersey resident; John A. McMaster, a New Jersey resident; Qwest Communications International, Inc., a Delaware corporation; and Qwest B.V. a foreign organization, Defendants/Appellees/Cross-Appellants.

Supreme Court of Arizona, En Banc.

August 5, 2010.


Attorney(s) appearing for the Case

Tiffany & Bosco, P.A. By Richard G. Himelrick, Phoenix and Munger Chadwick PLC By Michael J. Meehan, Tucson, Attorneys for Richard Grand and Marcia Grand.

Perkins Coie Brown & Bain P.A. By Joseph E. Mais, Brian C. Lake, Phoenix, Attorneys for John P. Nacchio.

Lewis and Roca LLP By John N. Iurino, Sivan R. Korn, Tucson, Attorneys for John A. McMaster.

Fennemore Craig, P.C. By James D. Burgess, Timothy Berg, Phoenix, and Boies, Schiller & Flexner LLP By Jonathan Sherman, Washington, DC, Attorneys for Qwest Communications International, Inc. and Qwest B.V.

Paul G. Ulrich, P.C. By Paul G. Ulrich, Phoenix, Attorney for Amicus Curiae ML Liquidating Trust.


OPINION

HURWITZ, Vice Chief Justice.

¶ 1 The issue for decision is whether the defendants "participated in" an allegedly unlawful sale of securities. The courts below held that the defendants did not participate in the sale. We agree.

I.

¶ 2 In 1999, Koninklijke KPN N.V. and Qwest Communications International, Inc. ("Qwest") formed a joint venture, KPNQwest ("KPNQ"). Joseph P. Nacchio...

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