Nortel moved a major step forward in finally putting its accounting scandal behind it after two U.S. judges approved a $2.25-billion class-action lawsuit settlement. U.S. District Judge Loretta Preska said the global settlement reached earlier this year is “fair, reasonable and adequate” to compensate people or entities who bought common stock or sold options on Nortel stock between April 24, 2003, and April 27, 2004. U.S. District Judge Richard Berman said a similar deal reached on behalf of as many as 1.4 million Nortel investors between Oct. 24, 2000, and Feb. 15, 2001, is fair and adequate. The lawsuits involve allegations that Nortel executives, including ex-CEO Frank Dunn, cooked the books to trigger lucrative bonus plans.
It’s All Over but the Paying