NEW YORK, May 9, 2004 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com), which has filed a class action lawsuit against Nortel Networks, Inc. ("Nortel" or the "Company") (NYSE:NT) and three of the Company's senior officers, on behalf of all persons or entities who purchased the securities of Nortel during the period April 24, 2003 and March 10, 2004 (the "Class Period"), announces that investors have eight (8) more days (until Monday May 17, 2004) to seek appointment by the Court as one of the lead plaintiffs in this action.
The Complaint alleges that defendants issued false and misleading financial reports and statements. 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.
Thereafter, on April 28, 2004, Nortel shocked the market by announcing that it had fired its CEO, CFO and Controller for cause. Further, the Company said that it actually lost money in the first half of 2003, whereas it had previously reported a net profit. It added that the first-quarter 2004 results would be delayed. So far, Nortel said it expects to restate results for 2001, 2002 and 2003. The coming restatement now appears to be much larger than previous reports have indicated.
If you purchased the securities of Nortel during the Class Period, you have until Monday 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 number.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca