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Nortel Networks Corporation (NYSE: NTL) Investor Securities Class Action Lawsuit 05/18/2009

  • If you purchased shares of Nortel Networks Corporation (NYSE: NTL), you may have certain options. Please contact the Shareholders Foundation, Inc.

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Lawsuit Overview

Case Dismissed
Company
Nortel Networks Corp.
Security
NYSE: NTL

Case Name
Nortel Networks Shareholder Class Action Lawsuit 05/18/2009
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Southern District of New York

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Class Period End
Deadline To File for Lead
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Summary

September 6, 2018 - The Court of Appeals agreed with the court's ruling. The case was dismissed.

May 11, 2018 - A notice of appeal was filed.

April 11, 2018 - The court granted defendants' motion to dismiss.

October 6, 2017 - A motion to dismiss the amended complaint was filed.

September 21, 2017 - An amended complaint was filed.

May 18, 2009 - An investor in shares of Nortel Networks Corporation (NYSE: NTL now trading on the OTC sheets as NRTLQ) filed a lawsuit in the U.S. District Court for the Southern District of New York against Nortel Networks Corporation over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between May 2, 2008 and September 17, 2008.

According to the complaint the plaintiff accuses that certain of Nortel Networks Corporation’s former executives violated the Securities Exchange Act of 1934 for their failure to disclose material adverse facts about Nortel Networks Corporation’s true financial condition, business and prospects.

Nortel Networks Corporation is not named in this action as a defendant because it and its core operating subsidiaries filed for bankruptcy protection in January 2009. Then, on September 17, 2008, Nortel Networks Corporation issued a press release announcing its preliminary view on certain third quarter results”, that it was engaging in a comprehensive review” of Nortel Networks Corporation’s business, and that it planning” was underway for further restructuring and other cost reduction initiatives.”

In response to these announcements, the price of Nortel Networks Corporation stock declined from $5.30 per share to $2.68, on heavy trading volume, so the lawsuit. Nortel Networks Corporation supplies end-to-end networking products and solutions that help organizations enhance and simplify communications.

Nortel Networks Corporation is located in Toronto, Canada and had $10.948 billion in total revenue in 2007 and $10.421 billion in total revenue in 2008.

Nevertheless, Nortel Networks Corporation filed for bankruptcy in January 2009 after losing $5.8 billion last year as phone companies curbed spending to cope with the slowing economy. It is expected that Nortel Networks Corporation at least will reduce 5,000 workers (15 percent of the staff). Nortel Networks Corporation’s stock has dropped 97 percent in the past year.