NEW YORK, April 5, 2004 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit against Nortel Networks, Inc. ("Nortel" or the "Company") (NYSE:NT) and three of the Company's senior officers, on behalf of all persons or entities who purchased the securities of Nortel during the period April 24, 2003 and March 10, 2004 (the "Class Period"). The case was filed in the United States District Court for the Southern District of New York. The Complaint alleges that Nortel and the Company's President Frank Dunn ("Dunn"), Chief Financial Officer Douglas Beatty ("Beatty"), and Controller Michael Gollogly ("Gollogly") violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading financial reports and statements. Throughout the Class Period, the Company's earnings were artificially inflated through accounting manipulation in violation of Generally Accepted Accounting Principles ("GAAP").
On March 10, 2004, Nortel announced that it might have to restate results for 2003 and earlier, results which the Company had restated only months earlier. The Company also announced its need to delay filing of its 2003 annual report. Upon Nortel's announcements, the price of its common stock fell over 7%. Thereafter, Nortel announced on March 15, 2004, the suspension of defendants Beatty and Gollogly. Following this announcement, the price of the shares of the Company's stock fell 18.5%. The Securities and Exchange Commission ("SEC") has reportedly undertaken a formal investigation of the Company's accounting practices.
If you purchased the securities of Nortel during the Class Period, you have until May 17, 2004 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
Contact: Andrew G. Tolan, Esq. of Pomerantz Haudek Block Grossman & Gross LLP, 888-476-6529 ((888) 4-POMLAW) or agtolan@pomlaw.com