Nortel Networks Corp. ERISA Litigation
ERISA & Employee Benefits
United States District Court for the Middle District of Tennessee, Nashville Division
Class Period Start:March 7, 2007
Class Period End:January 1, 2008
** Note that the Final Settlement Approval Hearing is
scheduled for January 11, 2012 at 10am**
The case seeks recovery of losses suffered by participants in
the Long-Term Investment Plan (the "Plan"), a 401(k) plan sponsored
by Nortel Networks, Inc. ("Nortel").
During the class period March 7, 2000 through January 1, 2008,
plaintiffs allege that Nortel engaged in a variety of practices
that caused its income and assets to be vastly overstated.
Nortel restated its financial statements on several occasions and
then sought bankruptcy protection in the U.S. and Canada. The
fiduciaries for the Plan allegedly failed to discharge their duties
to Plan participants who invested in Nortel stock through the
Plan. As a result, the Plan and Plan participants lost
heavily as Nortel stock plummeted on disclosure of the true
operating and financial condition of the Company.
On October 13, the Court preliminarily approved the proposed
$21.5 million settlement for the benefit of the Plan and class.
The following documents are available for review: