Nortel and its principal subsidiary, Nortel Networks Limited, will pay $35 million to settle civil fraud charges with the Securities and Exchange Commission and will take steps to prevent fraud in the future, the SEC and the company said Monday.
The settlement was announced as the SEC filed a lawsuit in U.S. District Court in Manhattan, accusing Nortel Networks Corp. and Nortel Networks Limited of committing revenue fraud and earnings management fraud that allowed it to meet unrealistic earnings guidance it provided Wall Street in 2000, 2002 and 2003.
