NEW YORK, April 2, 2004 (PRIMEZONE) -- Wolf Popper LLP has filed a securities class action in the United States District Court for the Southern District of New York, against Nortel Networks Corporation (NYSE:NT) (TSE:NT) and certain of its officers, including Douglas C. Beatty, Nortel's Chief Financial Officer, and Michael J. Gollogly, Nortel's Controller. The lawsuit was filed on behalf of persons who purchased the securities of Nortel from December 23, 2003 through March 15, 2004.
On October 23, 2003, Nortel announced that it was conducting an internal review of its accounting statements and would restate its financial results. On December 23, 2003, Nortel reported that it had completed that internal review and had filed restated financial statements with the SEC for prior fiscal periods that were in compliance with generally accepted accounting principles ("GAAP"). On January 29, 2004, defendants issued a press release reporting 2003 operating results, representing that 2003 was "a tremendous year."
On March 10, 2004, Nortel shocked investors by stating that it would delay the filing of its 2003 financial statements with the SEC to continue is review of the previously issued (and purportedly corrected) financial reports, and that Nortel would likely further restate its quarterly 2003 and prior fiscal year financial statements due to problems with the accounting for "certain accruals and provisions in prior periods." On March 15, 2004 Nortel further stated that it had placed defendants Beatty and Gollogly on leaves of absence pending that further review. In the wake of that announcement, the value of Nortel securities plummeted by 18.51% on March 15, 2004, from $6.43 per share to $5.24 per share, on four times Nortel's average daily trading volume.
The Complaint alleges, among other things, that defendants' (including Beatty and Gollogly) assurances, in the December 23, 2003 and January 29, 2004 press releases, and in the restated financial statements filed with the SEC on December 23, 2003, that those financial statements were in compliance with GAAP, were materially and knowingly or recklessly false and misleading.
Class members who desire to be appointed lead plaintiff in this action must file a motion with the court no later than May 17, 2004. If you purchased Nortel securities during the period December 23, 2003 through March 15, 2004 and would like to discuss this lawsuit, you may contact:
Robert C. Finkel, Esq. Wolf Popper LLP 845 Third Avenue New York, NY 10022 Telephone: 212.759.4600 or toll free 877.370.7704 E-mail: irrep@wolfpopper.com Website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca