| Company: | Nortel Networks Corporation |
| Ticker Symbol: | NYSE: NT |
| Class Period: | January 29, 2004 to March 15, 2004 |
| Court: | Southern District, NY |
| Date Filed: | Mar-22-04 |
| Lead Plaintiff Deadline: | May-17-04 |
| Allegations: |
A securities fraud class action complaint has been filed in the Southern District of New York against Nortel Networks Corporation ("Nortel"), on behalf of purchasers of publicly traded securities of Nortel (NYSE:NT) (TSE:NT) between January 29, 2004 and March 15, 2004 inclusive (the "Class Period").
The Complaint charges defendants Nortel, Frank A. Dunn, Douglas C. Beatty, and Michael J. Gollogly, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The Complaint alleges that defendants' financial reports and statements issued on January 29, 2004 which reported strong profits and exceeded analysts' expectations for the fourth quarter 2003 and 2003 year-end were false and misleading. On March 10, 2004, Nortel suddenly announced that it would need to delay filing its 2003 annual financial statements with the Securities and Exchange Commission ("SEC") and that, as a result of its ongoing review of previously-issued financial results, the Company would need to revise its just-announced results for the full-year and certain quarters of 2003, and would likely restate its previously-filed financial results for one or more earlier periods as well because it was re-examining the book-keeping surrounding "certain accruals and provisions in prior periods." The Company admitted that the delay in filing the 2003 annual financial statement would violate the Company's debt covenants and could, therefore, have a serious adverse impact on the Company. Then, in a highly unusual move, the Company announced on March 15, 2004 that, "effective immediately," it was placing defendants Beatty (Nortel's CFO) and Gollogly (Nortel's Controller) on a "paid leave of absence pending the completion of the independent review being undertaken by the Company's Audit Committee." Following this announcement, shares of the Company's stock fell by $1.19 per share on the NYSE, or 18.5%, to close at $5.24, in extremely heaving trading, and continued to slide further in after-hours trading.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The Complaint charges defendants Nortel, Frank A. Dunn, Douglas C. Beatty, and Michael J. Gollogly, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The Complaint alleges that defendants' financial reports and statements issued on January 29, 2004 which reported strong profits and exceeded analysts' expectations for the fourth quarter 2003 and 2003 year-end were false and misleading. On March 10, 2004, Nortel suddenly announced that it would need to delay filing its 2003 annual financial statements with the Securities and Exchange Commission ("SEC") and that, as a result of its ongoing review of previously-issued financial results, the Company would need to revise its just-announced results for the full-year and certain quarters of 2003, and would likely restate its previously-filed financial results for one or more earlier periods as well because it was re-examining the book-keeping surrounding "certain accruals and provisions in prior periods." The Company admitted that the delay in filing the 2003 annual financial statement would violate the Company's debt covenants and could, therefore, have a serious adverse impact on the Company. Then, in a highly unusual move, the Company announced on March 15, 2004 that, "effective immediately," it was placing defendants Beatty (Nortel's CFO) and Gollogly (Nortel's Controller) on a "paid leave of absence pending the completion of the independent review being undertaken by the Company's Audit Committee." Following this announcement, shares of the Company's stock fell by $1.19 per share on the NYSE, or 18.5%, to close at $5.24, in extremely heaving trading, and continued to slide further in after-hours trading.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
