Nortel CEO, CFO Face Shareholder Class Action

Law360, New York (May 19, 2009, 12:00 AM EDT) -- Two top executives from bankrupt technology company Nortel Networks Corp. have been hit with a proposed shareholder class action accusing them of failing to disclose the company's bleak financial condition to investors.

The complaint, lodged Tuesday in the U.S. District Court for the Southern District of New York, claims Nortel President and Chief Executive Officer Mike S. Zafirovski and Chief Financial Officer Pavi Binning helped artificially inflate the company's stock price, a move that left investors in the lurch when stocks tumbled after Nortel announced significant...
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