LITTLE ROCK, Ark., Feb. 17, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that it has been retained to file a class action suit on behalf of purchasers of Nortel Networks Corp. securities, ("Nortel" or the "Company") (NYSE:NT) (TSE:NT) who purchased shares of the Company between January 19, 2001 and February 15, 2001, inclusive (the "Class Period").
The action will be filed against defendants Nortel, John Andrew Roth (CEO, President and Director), William F. Conner (President of Nortel's E-Business Solutions), Chahram Bolouri (President of Nortel's Global Operations), and Frank Dunn (Chief Financial Officer).
The complaint will charge that defendant violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentation to the market between January 18, 2001 and February 15, 2001 concerning the demand for its products. Specifically, the complaint will allege that defendants issued a press release on January 18, 2001, (after the close of the securities markets) announcing record operating results for the year 2000, and especially strong fourth quarter of 2000 performance. In the press release, defendants represented that Nortel's "global reach and industry leading portfolio" would allow it to "continue to outpace the market and gain profitable market share" even in the face of the "tightening of capital within the telecom sector." The announcement sent its stock price soaring 10% in one day. The complaint will allege that the statement was materially false and misleading when made because the Company had no basis for reassuring the market that demand for its products would remain robust, given the economic slowdown that was impacting companies in general and the telecommunications sector -- upon which Nortel relies -- in particular. On February 15, 2001, less than a month after issuing its market moving representations, Nortel issued a press release announcing that it was drastically lowering its guidance for Nortel's 2001 fiscal year because of decreased demand for its products due, in large part, to spending cuts by telecommunications companies. Following the announcement, Nortel's stock price plunged by 34% in one day, from $29.75 per share to $19.50 per share (erasing $33 billion of Nortel's market capitalization). Prior to the disclosure of the true state of its business, individual defendants Bolouri and Conner collectively sold over $7 million of their personally held Nortel stock.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. 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 must meet certain requirements and take appropriate action by April 17, 2001. You are encouraged to call, e-mail, or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Client Relations Department: Sue Null, Charlie Gastineau or Jackie Addison 11311 Arcade Drive, Suite 200 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca