Nortel To Settle Class Action Suits For $2.7B

Law360, New York (March 17, 2006, 12:00 AM EST) -- Ready to resolve two class action lawsuits that sprang from its accounting scandal, telecommunications supplier Nortel Networks Corp. announced Friday that its insurers will pay $228.5 million toward the settlements, raising the overall settlement total up to $2.7 billion.

The total amount was raised from Nortel’s agreement last month to pay $2.47 billion, which includes $575 million from its reserves. Both suits took place in the U.S. District Court for the Southern District of New York.

Investors will receive the settlement in cash and common shares....
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