The accounting scandal at Nortel Networks Corp. claimed four more defendants on Sept. 12, when the U.S. Securities and Exchange Commission filed civil fraud charges against former vice-presidents Douglas Hamilton, Craig Johnson, James Kinney and Kenneth Taylor. They join the SEC’s March lawsuit against former CEO Frank Dunn and ex-executives Douglas Beatty, Michael Gollogly and MaryAnne Pahapill.
Nortel has restated its financial results four times since 2003, prompting lawsuits, regulatory probes and agement team, new governance processes and new focus on the future.” Tell it to the judge.
downward pressure on its stock (TSX: NT), which has been trading in the $17 range (or $1.70, given consolidation), far from its high of $124.50 in the summer of 2000.
“This new suit filed by the SEC relates to the old Nortel,” said a company statement. “There is a new Nortel in place now, with a new management team, new governance processes and new focus on the future.” Tell it to the judge.