This class proceeding concerned the misrepresentation of Nortel’s financial performance to investors. It alleged that, between October 24, 2000 and February 15, 2001, Nortel improperly publicized and reported exaggerated revenues contrary to Generally Accepted Accounting Principles and Securities and Exchange Commission rules (“Nortel I”). A similar class proceeding was advanced against Nortel with respect to the period from April 23, 2003 and April 27, 2004 (“Nortel II”).
Nortel I and Nortel II were settled in June 2006 and the settlement and distribution of compensation to investors worldwide was approved by the various courts in the fall of 2006. The settlement provides for compensation in cash and Nortel common shares.
The persons and entities the settlement represents are detailed in the settlement approval orders. Generally, they are comprised of persons and entities who purchased Nortel common stock or call options or who sold put options during the relevant periods.
The distribution of the settlement is underway. The deadline to file a claim expired on December 5, 2007. The Claims Administrator is The Garden City Group Inc. Garden City maintains a website at www.nortelsecuritieslitigation.com. You may also call Garden City with questions at 1-866-881-7495. Garden City should be your primary source of further information, including any questions regarding the settlement, distribution and relevant court documents.
