Join the mailing list Printer-friendly version

COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP FILES CLASS ACTION SUIT AGAINST FORMER EXECUTIVES OF NORTEL CORP.

New York – May 19, 2009 – Coughlin Stoia Geller Rudman & Robbins LLP (“Coughlin Stoia”) (http://www.csgrr.com/cases/nortelcorp/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Nortel Networks Corp. (“Nortel”) (NYSE:NRTLQ.PK) between May 2, 2008 and September 17, 2008, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”). Nortel is not named in this action as a Defendant because it and its core operating subsidiaries filed for bankruptcy protection in January 2009.

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a member of this Class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/nortel/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges certain of Nortel’s former executives with violations of the Exchange Act. Nortel supplies end-to-end networking products and solutions that help organizations enhance and simplify communications.

The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose the following adverse facts, among others: (i) that demand for the Company’s products was declining as carriers cut back their capital expenditures and other customers deferred purchase decisions; (ii) that the Company’s financial results were materially overstated as the Company was failing to properly write-down its goodwill; (iii) that the Company’s restructuring was not meeting with success as the Company was struggling to cut costs and improve profitability; (iv) and as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its business, operations, earnings and prospects.

On September 17, 2008, Nortel issued a press release announcing its “preliminary view on certain third quarter results.” The Company also announced that it was engaging in a “comprehensive review” of Nortel’s business and that “planning” was “underway for further restructuring and other cost reduction initiatives. . .” In response to the Company’s announcement, the price of Nortel stock declined from $5.30 per share to $2.68, on heavy trading volume.

Plaintiff seeks to recover damages on behalf of all purchasers of Nortel securities during the Class Period (the “Class”). The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm. Contact: Coughlin Stoia Geller Rudman & Robbins LLP Samuel H. Rudman, 800-449-4900 David A. Rosenfeld djr@csgrr.com