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Thread: Criminal fraud trial of three ex-Nortel executives begins

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[quote=COOLSPRINGS,454377]“The action sends a strong message that officers of U.S.-filing foreign corporations will be held to the same standards of accountability that are required of all participants in the U.S. financial markets.”

Nortel emerged in the late 1990s as a world leader in the optical networking technology used by countless telephony and dot-com ventures.

It went on an unprecedented buying spree, using its stock, which peaked at $124.50, to acquire a series of in-process research companies that culminated in record-breaking goodwill charges against Nortel.

When the dot-coms, fuelled by abundant venture capital, failed to deliver sales and profits, the speculative stock bubble burst, sending the tech-weighted Nasdaq index into a tailspin that wiped more than $300 billion from investors’ portfolios.

Nortel’s Internet and telephone networking companies slashed orders and Nortel’s share price and profits plunged.

The company responded with sweeping leadership changes, shed more than 60,000 employees and retreated to its core business.

Nortel appeared to return to profitability under Dunn until March 2004, when the company said it would delay filing audited financial statements for the preceding year.

That warning turned out to be a prelude to a series of financial restatements that led to an Ontario Securities Commission settlement with the company that saw Nortel pay $1 million and prompted a criminal investigation by the RCMP.

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