PHILADELPHIA, April 29, 2004 (PRIMEZONE) -- Law Offices Bernard M. Gross, P.C. (http://www.bernardmgross.com) announces that a class action lawsuit, numbered 04cv 3158, was commenced in the United States District Court for the Southern District of New York, against defendants Nortel Networks Corporation ("Nortel" or the "Company")(NYSE:NT) and Frank A. Dunn - former President, Chief Executive Officer and Director, Douglas C. Beatty - former Chief Financial Officer and Michael J. Gollogly - former controller, on behalf of all persons who purchased Nortel common stock (NYSE:NT), between January 7, 2004 and March 15, 2004 (the "Class Period") seeking remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
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 2003 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 defendants Beatty and Gollogly 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. Yesterday, the Company announced that its board had fired defendants, Dunn, Beatty and Gollogly.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross of Law Offices Bernard M. Gross at 866-561-3600(toll-free) or via e-mail at susang@bernardmgross.com. If you are a member of this class, you can view a copy of the complaint as filed at http://www.bernardmgross.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you purchased or otherwise acquired the securities of Nortel between January 7, 2004 and March 15, 2004, and sustained damages, you may, no later than May 17, 2004, file a motion to be appointed lead plaintiff, if you so choose. Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.