NEW YORK, April 27, 2004 (PRIMEZONE) -- A class action lawsuit has been filed by Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) in the United States District Court for the Southern District of New York, Civil Action No.: 04 CV 2572, against Nortel Networks, Inc. ("Nortel" or the "Company") (NYSE: NT) and three of the Company's senior officers, on behalf of investors who purchased the securities of Nortel during the period April 24, 2003 and March 10, 2004 (the "Class Period").
The lawsuit alleges that defendants issued false and misleading financial reports and statements. In particular, it is alleged that throughout the Class Period, the Company's earnings were artificially inflated through accounting manipulation in violation of Generally Accepted Accounting Principles ("GAAP").
On March 10, 2004, Nortel announced that it might have to restate results for 2003 and earlier, results which the Company had restated only months earlier. The Company also announced its need to delay filing of its 2003 annual report. Upon Nortel's announcements, the price of its common stock fell over 7%. Thereafter, Nortel announced on March 15, 2004, the suspension of defendants Douglas Beatty and Michael Gollogly. Following this announcement, the price of the shares of the Company's stock fell 18.5%. The Securities and Exchange Commission ("SEC") has reportedly undertaken a formal investigation of the Company's accounting practices.
If you purchased the securities of Nortel during the Class Period, you have until May 17, 2004 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone.
CONTACT: Andrew G. Tolan, Esq. of Pomerantz Haudek Block Grossman & Gross LLP, 888-476-6529 ((888) 4-POMLAW) or agtolan@pomlaw.com