Nortel, SEC Settle Fraud Suit For $35M

Law360, New York (October 15, 2007, 12:00 AM EDT) -- Nortel Networks Corp. agreed to pay $35 million Monday to settle a lawsuit brought by the U.S. Securities and Exchange Commission alleging it committed accounting fraud, making itself appear as if it were hitting Wall Street's goals.

The SEC alleged that Ontario-based Nortel committed fraud from 2000 through 2003 to close the gaps between its financial reality, its targets and the expectations of Wall Street. The company, as is standard, did not admit or deny the SEC's allegations.

It is now permanently enjoined from violating the...
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