Sunday, October 14, 2007

Nortel Reaches Settlement with the SEC

Nortel announced a settlement on all issues with the U.S. Securities and Exchange Commission (SEC) in connection with the SEC's investigation of certain prior accounting practices at Nortel.

Nortel agreed to pay a civil penalty of US$35 million and consented to injunctions against it from violations of certain provisions of federal securities laws. Further, Nortel will provide to the SEC quarterly written reports detailing its progress in implementing its remediation plan and actions to address its outstanding material weakness in internal controls.

"We are pleased that we have reached final resolution in this matter. The settlement recognizes the extensive and proactive efforts made by Nortel's Board and senior management to identify and address the accounting and internal control issues and conduct that led to the investigation," said Nortel President and CEO Mike Zafirovski. "Through hard work, a dedication to excellence and an unwavering commitment to serving our customers, Nortel is recreating a great technology company which upholds the highest ethical standards and sound business practices. This is a new Nortel."