Nortel Networks Corp. ERISA Litigation
This case sought 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 alleged 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: