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Nortel Networks Corp. Securities Litigation
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NORTEL NETWORKS CORP. SECURITIES LITIGATION
(OCTOBER 24, 2000 - FEBRUARY 15, 2001)
SUMMARY ONLY
FOR COMPLETE INFORMATION
PLEASE GO TO
WWW.NORTELSECURITIESLITIGATION.COM
STATUS OF THE LITIGATION
Updated: August 2, 2006
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The Ontario Public Service Employees' Union Pension Trust Fund was appointed
lead plaintiff by Order, dated January 10, 2002.
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The second consolidated amended class action Complaint (the "Complaint") was
filed in the United States District Court, Southern District of New York, on
January 18, 2002.
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The law firm of Milberg Weiss Bershad Hynes & Lerach LLP was appointed sole
lead plaintiff by Order dated February 1, 2002.
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Nortel filed a motion to dismiss the Complaint on April 1, 2002.
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Nortel's motion to dismiss was itself dismissed by the United States District
Court, Southern District of New York, on January 3, 2003.
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The certification motion was argued on September 4, 2003. On September 5, 2003,
the court issued its reasons granting the motion for certification. The court
certified a worldwide class of shareholders who purchased Nortel shares during
the class period. Nortel sought to appeal the certification decision to the
Second Circuit Court of Appeals. The Second Circuit Court of Appeals refused to
hear the appeal. The certification decision therefore stands and the action
will now proceed to trial.
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In an order dated March 10,
2004, the court ordered, in part, that a listing of all record
transferees of Nortel common stock during the period October 24, 2000 and
February 15, 2001, inclusive, be provided to Class Counsel no more than fifteen
days from the date of the order. The court also ordered that the Notice of
Pendency of Class Action (the "Notice") be sent to the class members, the
solicitors of record in the various pending Canadian proceedings, and be
printed in the Wall Street Journal; the Globe and Mail; the National Post; the
Toronto Star; La Presse; the Vancouver Sun; and the Vancouver Province. The
order further states that, within fourteen days of receipt of the Notice,
securities brokers or other nominees who purchased Nortel common stock or call
options or sold Nortel put options during the Class Period are to provide Class
Counsel with the name and last known address of each person or entity whom or
which bought the securities during the Class Period for forwarding of the
Notice by Class Counsel or by the agent directly.
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There has been a conditional settlement which was announced on February 8, 2006
relating to two class action cases that are separately-pending before two
different District Court Judges in Federal Court in New York. The class period
for the Nortel I case is October 24, 2000 to February 15, 2001 (the "Class
Period"). If you bought Nortel common stock or call options or sold Nortel put
options during the Class Period you may be a member of the Class and entitled
to share in the settlement fund, provided the settlement becomes final. The
conditional settlement also covers a second U.S. class action litigation (the
"Nortel II case"), which was brought on behalf of persons and entities who
purchased or acquired Nortel common stock during the period April 24, 2003
through April 27, 2004. If you think that you may be a member of the Nortel II
Class, please contact the New York law firm of Bernstein, Litowitz, Berger
& Grossmann LLP at 800-380-8496.
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By Order dated June 29, 2006, the United States District Judge Richard M.
Berman approved the form, substance and requirements of the Notice of
Certifications in Canada and Proposed Settlements of Class Actions, Motions for
Attorneys' Fees and Settlement Fairness Hearings (the "Notice") and the Proof
of Claim Form. The Notice was also approved by Justice Winkler of the Ontario
Superior Court by Order dated June 27, 2006, by Justice Monast of the Superior
Court of Quebec by Order dated June 27, 2006, and by Justice Groberman of the
Supreme Court of British Columbia by Order dated June 27, 2006. The Notice will
be mailed to class members beginning in the latter part of July 2006, and will
also be published in a number of newspapers and magazines across North America.
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The Claims Administrator is The Garden City Group Inc. ("Garden City"). Garden
City maintains a website at www.nortelsecuritieslitigation.com, from which a
copy of the Notice and Proof of Claim Form may be downloaded. You may also call
Garden City with questions at 1-866-881-7495. Garden City should be your
primary resource for further information in regard to the settlement.
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Please note that the settlement of this litigation is contingent upon the
settlement of the Nortel II case in the U.S., as well as a number of similar
actions initiated in Ontario, Quebec and British Columbia. Courts in each
jurisdiction will convene on the following dates to determine whether the
global settlement should be approved, and to determine the amount of attorneys'
fees to be paid:
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in the U.S. Global Action: at 1:00 p.m. on the 26th day of October
2006, at the United States District Court for the Southern District of New
York, Daniel Patrick Moynihan United States Courthouse, Courtroom 12A, 500
Pearl Street, New York, NY.
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in the Ontario National Action: at 10:00 a.m. on the 6th day of
November 2006, at the Ontario Superior Court of Justice, 361 University Avenue,
Toronto, Ontario.
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in the Quebec Action: at 9:30 a.m. on the 16th day of November 2006,
at the Superior Court of Quebec, District of Montreal, 1 Notre-Dame East,
Montreal, Quebec.
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in the British Columbia Action at 10:00 a.m. on the 27th day of
November 2006, at the Supreme Court of British Columbia, 800 Smithe Street,
Vancouver, British Columbia.
To view a copy of the Notices which have been mailed to class members in the
above listed newspapers in English and French please click on "Notices" on the
left hand side of this page.
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