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Nortel Being Sued by SEC
By Mark Evans | October 15, 2007
In addition to pursuing ex-Nortel executives, the U.S. Securities and Exchange Commission is now suing Nortel for manipulating its earnings in 2000, 2002 and 2003. The SEC filed its complaint - SEC vs. Nortel, 07-cv-8851 - in the U.S. District Court, Southern District of New York (Manhattan).
Update: Nortel will pay $35 million to settle civil fraud charges with the SEC and will take steps to prevent fraud in the future. Nortel has also agreed to provide the SEC with quarterly written reports detailing its progress in implementing a remediation plan and actions to address weaknesses in its internal controls.
If the scheme of things, $35-million seems like a pretty low cost to pay to get the SEC off your back, particularly given Nortel paid $2.7-billion to settle class-action lawsuits.
Topics: Legal Issues |