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Shareholders Still Waiting While Stock Sinks
By Mark Evans | February 8, 2008
Two years ago, Nortel reached a settlement with shareholders who had launched a class-action lawsuits against the company over allegations the company’s revenue had been inflated during an embarrassing accounting scandal.
At the time, the value of the 62.9 million shares awarded to shareholders was $1.65-billion. Today, their value is a mere $696-million as the price of Nortel shares has dropped to about $11 from $26.16. Combined with about $800-million in cash being awarded, the total value of the settlement has dropped to $1.5-billion from $2.4-billion.
To make matters worse, shareholders will have wait at least another month to receive their cash/stock settlement as lawyers hammer out the details and complete court filings.
Source: Bloomberg
Topics: Legal Issues, Stock |