Nortel’s efforts to get back bonuses paid to ex-CEO Frank Dunn will be pressing ahead after a Canadian court ruled it would be an “injustice” to have any further delays in three lawsuits against Dunn.
“Nortel Networks and its shareholders have not had a clear response from Dunn (and others) with respect to their alleged misconduct,” Ontario Superior Court Judge Colin Campbell said in a decision. “To deny the opportunity for that explanation directly to the shareholders and the company for an indefinite period would in my view amount to an injustice.”
Dunn, fired for cause for allegedly being part of a plan to manipulate Nortel’s books to trigger a bonus scheme, wanted the three lawsuits put on hold until a lawsuit from the Ontario Securities Commission suit was decided. The OSC sued Dunn and other former Nortel executives last year, claiming they fraudulently inflated revenue.
A hearing scheduled for May 1 related to the OSC suit has been put on hold indefinitely.
Like I already said before…everyone recognizes Dunn is a crook, stooge and guilty as charged.
Casual Observer
sounds like a scramble for cash…nortel must be in real trouble.
Critic
The engineers in the United States owe a lot of money to Nortel. During the bubble people were playing the stock market, coming in late and working 2 jobs with different companies at the same time!! Is it a wonder this company is headed towards bankruptcy?
Realist
Well…all those engineers have been fired…so don't worry about that now.
Realist
Well…all those engineers have been fired…so don't worry about that now.
Nortel’s Bid to Recover Bonuses Goes Forward
Nortel’s efforts to get back bonuses paid to ex-CEO Frank Dunn will be pressing ahead after a Canadian court ruled it would be an “injustice” to have any further delays in three lawsuits against Dunn.
“Nortel Networks and its shareholders have not had a clear response from Dunn (and others) with respect to their alleged misconduct,” Ontario Superior Court Judge Colin Campbell said in a decision. “To deny the opportunity for that explanation directly to the shareholders and the company for an indefinite period would in my view amount to an injustice.”
Dunn, fired for cause for allegedly being part of a plan to manipulate Nortel’s books to trigger a bonus scheme, wanted the three lawsuits put on hold until a lawsuit from the Ontario Securities Commission suit was decided. The OSC sued Dunn and other former Nortel executives last year, claiming they fraudulently inflated revenue.
A hearing scheduled for May 1 related to the OSC suit has been put on hold indefinitely.
Source: Bloomberg.
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