When it comes to transparency, Nortel has a long way to go. Earlier this week, there was an intriguing development in a class-action lawsuit filed last year by Ontario Teachers' Pension Plan Board and the State of New Jersey against Nortel, which alleges the company made false and misleading statements about its results, which artificially raise the price of its shares.
Teachers has withdrawn a complaint against Nortel directors who were on its audit committee from April 2003 to April 2004. Meanwhile, Nortel has agreed to drop a motion to dismiss the lawsuit. As a result, the lawsuit will move into the discovery stage.
What I do not understand - and what Nortel refuses to explain - is why the motion was droppped. What's in it for them? My guess is Nortel doesn'tt want its directors to be sued so it made a deal with Teachers.
That said, the decision moves the lawsuit forward, which could be bad news for Nortel. My take is Nortel has already decided to sacrifice former senior executives such as Frank Dunn and Doug Beatty. As a result, it has absolutely no qualms about letting a lawsuit focused on these gentlemen to proceed.
|
||||||||
Nortel's Silence is Deafening
by
Mark Evans
on Thu 20 Jan 2005 03:01 PM EST | Permanent Link
Comments
No comments found.
|
My blog has moved.
Check out the new Mark Evans. It's part of my mini-blog empire that also includes All About Nortel and Twitterrati. You can subscribe to Mark Evans Tech by clicking on the RSS symbol above.
Check Out These Blogs
Search
Login
|
|||||||
|
||||||||