Nortel Networks might have cost its own employees and former employees hundreds of millions of dollars by cooking its books and at the same time allowing their workers to continue to buy Nortel stock in its 401(K) plan.
Investigation and pending class action lawsuit against Nortel Networks.
The class action consists of employees and former employees of Nortel Networks that owned Nortel Network common stock in Nortel's 401(k) after March 7, 2007.
The class action lawsuit alleges that Nortel and its senior management engaged in a variety of practices that caused its income and assets to be vastly overstated. Nortel has now restated its financial statements a total of four (4) times.
Nortel and these same senior executives were also fiduciaries for Nortel Network's 401(K) plan. The class action lawsuit alleges that they failed to discharge their duties to employees and former employees who invested in Nortel stock through the 401(K).
As a result, the Plan and Plan participants lost hundreds of millions of dollars as Nortel stock plummeted on disclosure of the true operating and financial condition of Nortel Networks.
Name (Stock Symbol)
Nortel Networks (NT)
Nortel Networks is a telecommunications equipment manufacturer.
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