LITTLE ROCK, Ark., March 25, 2004 (PRIMEZONE) -- Emerson Poynter LLP announced today that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Nortel Networks Corporation ("Nortel" or the "Company") (NYSE:NT) (TSE:NT) publicly traded securities during the period between December 23, 2003 and March 12, 2004, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be obtained by contacting the firm.
The complaint charges Nortel, Frank A. Dunn and Douglas C. Beatty with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that, shortly before the start of the Class Period, Nortel advised investors that it would be restating its financial results for 2000, 2001 and 2002 and the first and second quarters of 2003. Then, after reporting solid fourth quarter results during the Class Period that far surpassed analysts' expectations, the Company shocked investors by announcing that it would be restating its financial results yet again, this time for the just-reported fourth quarter of 2003 as well. Subsequently, in a clear indication of the severity of the Company's problems, the Company announced that it would be placing defendant Beatty and another executive company on paid leave of absence, pending the completion of the Company's independent review being undertaken by its audit committee. Following this announcement, shares of Nortel common stock fell $1.19 per share, or 18.5%, to close at $5.24 per share on extremely high trading volume.
Emerson Poynter LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Houston, Texas and Little Rock, Arkansas, but represents investors throughout the nation.
If you bought Nortel publicly traded securities between December 23, 2003 and March 12, 2004, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than May 17, 2004. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to contact our firm toll free at 1-800-663-9817 or via email to shareholder@emersonfirm.com. Any member of the purported class may move the Court to serve as lead plaintiff through Emerson Poynter LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca