Class-Action Lawsuits – 1, 2, 3

The Ottawa Citizen has a story today – actually a Q&A – looking at Nortel’s class-action lawsuits – two of which were settled earlier this year for $2.4-billion. Investors, however, should also keep in mind there are still RCMP, OSC, FBI and SEC investigations happening that involve the company’s accounting scandal. The Citizen also has a story looking at Nortel’s two-year battle to recover pirated copies of a key piece of software called GenKey.

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13 Responses to “Class-Action Lawsuits – 1, 2, 3”

  1. Harold Best Says:

    There are times when I think you people are shorting NT. Just when things start to look better you seem to dig up as much dirt as you can. Nortel will survive and get beyond all of the problems previously created by long gone crooks. Give it rest!!

  2. Geoff Says:

    The previous comment by Harold says it all.

  3. nortel Says:

    harold,
    in the name of transparency, i have never owned nortel shares. as well, not sure why you want to shoot the messenger…:)…it’s the ottawa citizen writing the stories.

    cheers, mark

  4. Apple Says:

    sure that the shorting or put options increased lately as those who were defrauded will get their compensations in shares /628 mill new shares/
    How you can protect your compensation based on $3.05 a share calculation when the stock price is spinning down the toilet?

    answer
    short at $3 or buy proper number of put options to insure that you will not lose once again.

  5. homealone Says:

    the company is going up for sale in 2006 end or early 2007 to get some cash for bottom line.

  6. treehouse Says:

    executive consultants are working long hours to make new plans for 2007-2008.
    top executives are advised to start looking for more management workers for layoff and hire more outsource workers or outsource the jobs to newer and lower cost countries. India and China are not in the list.

  7. Bubbles Says:

    There is also a provision to protest the settlement amount before September 19th, 2006. A few months before the November 20th deadline to get one’s claims in.

    Even though there are good basis for rejection, I wonder if their presentation will be theatrics.

    a) their most recent revisions almost doubled from their downplayed estimate of $866M to $1.48B increasing on a weekly basis, for 2003, 2004, and most of 2005… totalling 5 billion in revisions including the 3.5B they revised earlier, worst every time they count. Interesting they had to certify they were not insolvent as part of the settlement.

    b) those who settled hold a vested interest “so as not to cripple the company”. The smaller guys hurt most make up such a smaller percentage of this pool, and should be considered to get paid more, even in full would not cripple them

    c) the initial settlement was based on a stock value much higher, and this deserves review. Especially in light of Nortel’s actions/ability to directly influencing the stock value. They even claimed a profit solely based on this last quarter’s reduced settlement due to a lower share price!. They still keep their bonuses after even these latest revisions claiming “the work is already done” well this sure looks like new work to me, and I wonder if they see any bonuses on this recent profit or their last Q205’s profits that were also overstated and restated they present on their web site like a sales flyer.

    d) 2003 was passed solely on revenue recognition, thanks to Cutler, and submitted down to the wire alleviating delisting threat, this too was restated and passed on false numbers

    e) the revisions were forced from them for better governance or they would still be trading with overstated income and revenues, post fraud to boot and they paid a premium for their very first time/passed by CEO who defrauded his previous employer while joining a company struggling to regain credibility. What exactly do shareholders need to prove here to make a case again? Should we pint out the ongoings of why they quick to claim a final settlement may never be reached during the tentative phase?

    f) operating under safe harbour they extended repairing their internal financial controls to 2008 when they have another 1.8B debt due that they may have trouble collateralizing, a far cry from fixing in 18 months NT claimed well over a year ago. Note, the ongoing adjustment of numbers and how they benefit at the shareholders’ expense.

    g) the settlement reflects poorly on principal, they lied for cash bonuses, a case no better why laws are written. People paid based on their formal financial statements, like a sworn affidavit, they lied, they stole, people were robbed. This certainly seems like no better case for full restitution with penalty.

    The Citizen also said their maybe accompanying regulatory fines on both sides of the border. Well the “maybe” goes towards (and is likely) for government fines due to their admitted fraud publicly disclosed on several occasions. Huge regulatory fines are a given.

    I also hardly think a few dozen people suddenly departing, timely resigned, or terminated for cause changed much there evidently by their revising their numbers they extend repairing, under safe harbor, after a year in silence they change last minute that would require a high degree of mass orchestration, perhaps as the derivative class action will show, since NT was reluctant to chase past officers even after repeated requests.

    There may be plenty of ammo to object to the settlement, will they use it, even if it is terrific, will it be futile, or do the defrauded have a chance to finally show corporate bullies who’s boss, as they did the government who see record surplus along with banks. ins. co.s, etc., while the masses, the little guy, runs record debt.

    This has got to stop, some sacrifices must be made, let Nortel become the example, unlike the OJ of antitrust who they now seek a partnership where our system lacks teeth for what it was designed for.

    Lots of reasons to reject the settlement I feel, lots, too many…

  8. Apple Says:

    Just when things start to look better you seem to dig up as much dirt as you can. Nortel will survive and get beyond all of the problems previously created by long gone crooks. Give it rest!!
    ———–
    re
    So as you see, things are not looking better with Nortel and NT stock.
    Why would you say it’s better now after so many cases of overstated revenues and earnings? When was the last time Nortel reported overstated revenues? In 2005 revenue was overstated by $1,5 bill!
    Does it mean 2006 numbers are reliable?
    Not at all as CFO admited 5 weakness_points in Nortel accounting system.
    Who would believe reported numbers anyway?
    Just try to search by Yahoo or Google with Nortel+fraud and you will get the answers.
    NT is placed as 4th biggest fraud settlement behind Enron, Worldcom and Cendant

  9. Bubbles Says:

    What do you mean,

    “There are times when I think you people are shorting NT.”
    This seems to be a common pumper paranoia/in denial. Besides, who would short a 2buck stock now… If you want to see shorting interest, wait until the reverse split, shorts will have a may day then you can be sure.

    “Just when you seem to dig up as much dirt as you can.”
    What “dig up”, ongoing news is “dirt” too. Name one thing that is “getting better”, stock tanked 30% since sly guy’s arrival… products cut… no plan but on the fly, no dance partner in mergers, can’t sell 25% of tanking revenues to sell 6 or 7 mill a year, numbers still worst every time they count with reverse split to combat burden from one of the worlds largest frauds, it is endless, Where are these “things start to look better”, or anything looking better, I suggest is it you who “gives it a rest” trying to have us believe your assumptions.

    “Nortel will survive and get beyond all of the problems previously created by long gone crooks. Give it rest!!””
    How sure are you it will survive after creditors increased collateralization 50% to 1.5B due to ongoing overstating income… why weren’t they as comfortable as you? NT printed 10% interest on $2B issuing B3 rated bonds to pay these guys, they must also dilute at least 14% of company equity for one of the worlds largest frauds, cash was $4 billion, then $3 billion, and what is it now, under $2? …and they have 1.8B to address in 2008 in this trend…how much cash will they have then if they don’t sell ongoing losing operations cheap, who buys losing operations anyways. As for your “give it a rest” I have already commented to that end…

    “Long gone crooks”
    You know better than Owens too eh, who admitted they were “difficult to find”? Look at the level of mass orchestration required to pull off such a stunt. You think only a few dozen “long gone” after recent chronic revisions whowing still overstating. Amazing they still see Q2 recent profit at the shareholders expense… Think again, the vast majority are still there with the sorst to come in criminal results, fines, reverse splits, tanking…!

    Sure many had to go because or for cause since they are so reluctant to chase past officers even after repeated requests resulting in a derivative class action, plea bargained board held 80 evangelical no flys on us bored meetings, Gary Deichendt quit/slandered, ABRUPTLY departed or hired paid lottery packages /severences, company still keeps bonuses even after down played initial revisions, etc., I anticipate a major bombs yet…

    Even their supporters are unethical… Nortel pumpers literally flooded/complaining to Yahoo admin with multiple IDs to keep the critics off the board… The SEC should monitor that subpoena that board and find just what their relentless motives are all the way down.

  10. Anonymous Says:

    bubble (aka) jamezzz- you sure don’t quit do you?

    something to consider, after being kicked off the yahoo site!

  11. Bubbles Says:

    That was a post from “mindgallery” ID at Yahoo, and his many IDs who flooded yahoo’s inbox (as shown below).

    He is a pumper on Yahoo like the other ID “abcsofhealth” of abcsofhealth.com who uses Yahoo addresses. A googlesearch on “abc4all” shows FDA frauds/scams and spam using Yahoo addresses throughout, 911 victim and Tsunami donations, holistic healing and products, even penis elrgement kits and plasma water what ever that is. Scam is a multi million dollar business and boy do they know how to manipulate IPs.

    This is who fooled yahoo into banning the honest poster Jamez id by “mindgallery. Just review the posts themselves to see, the profanity of this pumper vs. the honest poster he fooled Yahoo to ban, the outright lies, ploys, underhanded tactics to make anyone civil nauseous, something the SEC should indeed take an interest in if enough people recommend an investigation. Tyranny slipped through the cracks at Yahoo:

    Heads up as these Nortel pumpers or pumper are showing up here now too to discredit the critics. They may very well be employees of Nortel too goven their relentless pumping since a multiple of its value.

  12. Bubbles Says:

    oh. btw, here is his admitting how he got an honest poster ban claiming it trades at 20 year lows if we were to exclude the brief bubble from May 2000 to January 2001 clearly indicated in previous posts he didn’t furnish Yahoo.

    He “flooded” Yahoo with who knows how many IPs and IDs claiming Jamez posted it was trading at 20 year lows falsely violating their terms of Service” where they found a yahoo sympathizer to ban.


    Re: Loss reported as a gain to fool in (Not rated) 4-Aug-06 12:55 am
    Hey jamezzz-

    How come it is when I click on your posts from your original ID, then click on your name to see your profile, it now comes up with a 404 error?

    Guess yahoo decided you were full of shit after I flooded their inbox with reports of your false and misleading statements of 20 year lows?

    Guess that would explain the new ID, eh???

    ROTFLMFAO…

    MG
    Sentiment : Strong Buy

  13. Apple Says:

    Just when things start to look better you seem to dig up as much dirt as you can. Nortel will survive and get beyond all of the problems previously created by long gone crooks. Give it rest!!
    ———–
    re
    So as you see, things are not looking better with Nortel and NT stock.
    Why would you say it’s better now after so many cases of overstated revenues and earnings? When was the last time Nortel reported overstated revenues? In 2005 revenue was overstated by $1,5 bill!
    Does it mean 2006 numbers are reliable?
    Not at all as CFO admited 5 weakness_points in Nortel accounting system.
    Who would believe reported numbers anyway?
    Just try to search by Yahoo or Google with Nortel+fraud and you will get the answers.
    NT is placed as 4th biggest fraud settlement behind Enron, Worldcom and Cendant

    =========
    re
    So who was right?
    are things looking better @Nortel?
    My answer is
    NO!

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