Corporate Governance

Department of Justice Declines to Pursue Nacchio Resentencing Appeal

By William McEachron

As part of the Race to the Bottom's continuing coverage of Joseph Nacchio's legal saga, Professor O'Brien posted on the 10^th Circuit's decision on Nacchio's sentence. A three-judge panel remanded the calculation of Nacchio's sentence to U.S. District Court for being excessive. The panel ruled the initial sentence improperly calculated Nacchio's gains from insider trading. The amount gained from insider trading dictates the sentence length. If The U.S. District Court finds the gain was overstated, Nacchio's sentence will likely shrink from its current six years.

As reported in the Denver Post, the Department of Justice will not to appeal the decision to remand the sentence. The Department of Justice had the options of asking the panel to review the decision, requesting an en banc review, or appealing the decision to the Supreme Court.

Full post as published by The Race to the Bottom on August 21, 2009 (boomark / email).