Category Archives: Legal Issues

U.S Trustee Balks at Bonuses

It looks like the incentive bonuses that Nortel wants to give to its remaining employees over the next two years may turn into a battle. According to BusinessWeek, acting U.S. Trustee Roberta DeAngelis is objecting to the $55.6 million of retention and incentive payments for 866 employees, describing them as “extraordinary”. The payments are part of a [...]
Also posted in Financials | Tagged , , | 33 Comments

Paperworks Stalls Criminal Prosecution

Lost amid Nortel’s bankruptcy proceedings and the dumping of all of its assets is the fact that criminal prosecution against three ex-Nortel executives – Frank Dunn, Doug Beatty and Michael Gollogly – is still happening. The trio were charged by the RCMP in 2008 for allegedly cooking Nortel’s books to trigger a lucrative bonus structure. The [...]
Posted in Legal Issues | Tagged , , , | 50 Comments

While Rome Burns, More Bonuses for Execs

Update: CBC (television) will be running a report tonight on its investigation into 72 Nortel executives getting additional bonuses. If the Nortel soap opera could turn any more bizarre, the CBC has obtained documents that indicate Nortel launched a new compensation plan earlier this Fall that will see executives receive $7.5-million in addition to their 2009 [...]
Also posted in Financials | Tagged , , , , | 39 Comments

Nortel: We Owe the IRS Nothing

After being hit with a $3-billion tax bill from the Internal Revenue Service last month, Nortel has fired back in a court filing, claiming there “is no reasonable or realistic basis for the IRS claim”. “The IRS overstates the amount of income of the NNI Filing Group that could be subject to US federal income [...]
Also posted in Financials | Tagged , , | 28 Comments

A Delay in the Auction Process?

For everyone waiting for the winner of the Nortel’s enterprise business to be announced, there may be a chance that you’ll have to wait until next week. According to documents within Epiq Systems, Verizon Communications will participate in an oral examination on Sept. 14 in New York City at the offices of Nortel’s lawyers Cleary Gottlieb [...]
Also posted in M&A | Tagged , , , , | 31 Comments

Frank Dunn’s Legal Woes

Given Nortel’s slow march into the abyss, a lot of people might have forgotten about Frank Dunn, the ex-CEO who was abruptly fired five years ago amid allegations of an accounting scandal. Since then, Dunn has been involved in litigation after being sued, along with several other Nortel executives by the Securities and Exchange Commission for [...]
Posted in Legal Issues | Tagged , , , | 27 Comments
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