Securities: US Justices Approve Settlement Between Nortel and Shareholders

United States justices have approved a settlement between Nortel and their shareholders for an approximate $3.14 Billion USD. This approval moves the settlement one-step closer to final approval. Early in 2006, these two groups agreed to pursue a settlement in order to end a flurry of class action lawsuits. The lawsuits were a result of accounting malpractice that occurred when the company illegally adjusted financial data from 2001 - 2005. The settlement still needs to be approved by Canadian courts in Ottawa, Quebec and British Columbia.

Nortel to Settle for $3.1bn

According to one of the United States justices who approved the case, “The settlement is approved as fair, reasonable and adequate.” If the settlement is ultimately approved it will be one of the largest class-action securities fraud settlements in United States history. According to a spokesperson with Nortel, “We’re very pleased with the progress we’re making in settling the lawsuits and we look forward to putting them behind us.” The settlement does not include any statement that Nortel was involved in anything illegal.