CHICAGO, April 28, 2004 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that a class action lawsuit is pending in the United States District Court for the Southern District of Illinois on behalf of purchasers of the securities of Nortel Networks Corporation (NYSE:NT) ("Nortel" or the "Company") between October 23, 2003 and March 15, 2004, inclusive ("Class Period").
The Complaint alleges that Nortel, along with Frank A. Dunn (its president and CEO), Douglas C. Beatty (its CFO), and Michael J. Gollogly (its controller) violated the federal securities laws by issuing a series of materially false and misleading statements to the market. These misstatements have had the effect of artificially inflating the market price of Nortel's securities. On April 28, 2003, following an investigation by its Audit Committee, Nortel announced that Dunn, Beatty and Gollogly were terminated for cause. In response to this announcement, the price of Nortel common stock plummeted almost 30%.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Conor R. Crowley at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Nortel.
According to the Complaint, on March 10, 2004, Nortel suddenly announced that it would need to delay filing its 2003 annual financial statements with the Securities and Exchange Commission and that, as a result of its ongoing review of previously issued financial results, the Company would need to revise its just-announced results for the full-year and certain quarters of 2003, and would likely restate its previously filed financial results for one or more earlier periods as well because it was re-examining the book-keeping surrounding "certain accruals and provisions in prior periods." Nortel admitted that the delay in filing the 2003 annual financial statement would violate the Company's debt covenants and could, therefore, have a serious adverse impact on the Company. Then, in a highly unusual move, Nortel announced on March 15, 2004, that, "effective immediately," it was placing defendants Beatty (Nortel's CFO) and Gollogly (Nortel's controller) on a "paid leave of absence pending the completion of the independent review being undertaken by the Company's Audit Committee." Following this announcement, shares of the Company's stock fell by $1.19 per share on the NYSE, or 18.5%, to close at $5.24, in extremely heaving trading, and continued to slide further in after-hours trading. On March 29, 2004, Nortel announced a delay in the filing of its first quarter results for 2004 and that it would release "limited preliminary unaudited" financial results for the first quarter of 2004 on April 29 and hold a conference call. The Company also announced that the Annual Shareholders' Meeting originally scheduled for April 29, 2004, would be postponed to a later date.
If you purchased Nortel's securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than May 17, 2004.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Sections 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca