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Legal Issues

Shareholders Still Waiting While Stock Sinks

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 [...]

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,” [...]

Dunn: Come On Nortel, Cough Up

Ex-Nortel CEO Frank Dunn wants to defend himself against regulatory lawsuits but he claims that he can’t because Nortel won’t pay his legal bills.
Dunn’s lawyer, Thomas Heintzman, told a judge earlier today in Toronto that Dunn has “huge” legal bills but unless Nortel covers his costs, there’s no way he can afford “qualified counsel”/
One of [...]

Nortel and Vonage Kiss and Make Up

Vonage continued its lawsuit settlement streak by reaching an agreement with Nortel that will see a license exchange but no cash involved.
The dispute, which involved 411 and 911-related services, came after Nortel recently filed a lawsuit against Vonage for patent infringement.
Earlier this year, Vonage settled lawsuits with AT&T, Sprint, Nextel and Verizon.
For more, check out [...]

Vonage Settles…Again

Tis the season for good cheer…..and legal settlements.
According to Bloomberg, Vonage and Nortel are apparently in discussions to settle a dispute over the use of 12 patents by Vonage.
Vonage has reached settlements in several other high-profile lawsuits this year, including a recent deal to pay $39-million to AT&T.
Update: Vonage and Nortel announced a settlement on [...]

Hamilton Seeks Dismissal

Douglas Hamilton, who is among the dozen ex-Nortel employees, who allegedly manipulated the company’s finances to trigger a lucrative bonus scheme, has filed a motion in a U.S. court to dismiss all charges levied against him by the SEC.
The filing follows similar moves by ex-CEO Frank Dunn and ex-CFO Doug Beatty.
Hamiltion, who was a vice-president [...]

Nortel Sues Vonage

You’ve got to love everyone’s favorite VOIP whipping boy: Vonage.
On the heels of settling a lawsuit involving Sprint for $80-million, Vonage is now being sued by Nortel, which filed a lawsuit in U.S. District Court alleging Vonage is infringing on 12 Nortel patents related to telephone management solutions.
“Defending our intellectual property rights is a top [...]

SEC Reaches Deal with ex-Nortel Execs

Before anyone gets too excited about what the SEC has done, it has not struck a deal with ex-CEO Frank Dunn, ex-CFO Doug Beatty or ex-controller Michael Gollogly.
It has, however, reached an agreement in principle to settle a lawsuit against Craig Johnson, James Kinney and Kenneth Taylor. The trio, along with Douglas Hamilton, had civil [...]

Legal Fees Mounting for Ex-Nortel Execs

At the end of the day, ex-Nortel CEO Frank Dunn and the other executives who allegedly cooked the books to trigger a lucrative bonus scheme may very well be exonerated. The entire accounting mess may, in fact, be - as Dunn contends - a result of mistakes and errors rather than a case of greed [...]

Dunn: We Made Mistakes

Ex-Nortel CEO Frank Dunn and ex-Doug Beatty claims the accounting problems that hobbled Nortel and led to extensive restatements were caused by mistakes rather than fraud.
In a response to a civil fraud lawsuit filed by the U.S. Securities and Exchange Commission, Dunn claims credit for saving Nortel after the telecom boom collapsed in 2000.
“In this [...]