Not having followed this thread, I apologize if this has already been posted:
Milberg Weiss Announces Class Action Lawsuit Against Nortel Networks
Corp. Milberg Weiss Announces The Filing Of A Class Action Suit on Behalf of
Purchasers of Nortel Networks Corp. Securities
NEW YORK, Feb 16, 2001 (BUSINESS WIRE) -- The law firm of Milberg Weiss Bershad
Hynes & Lerach LLP announces that a class action lawsuit was filed on February
16, 2001, on behalf of purchasers of the securities of Nortel Networks
Corp.,("Nortel" or the "Company") (NYSE: NT; TSE: NT) between January 19, 2001
and February 15, 2001, inclusive (the "Class Period').
A copy of the complaint filed in this action is available from the Court, or can
be viewed on Milberg Weiss' website at: milberg.com
The action, numbered 00CV0945, is pending in the United States District Court
for the Eastern District of New York, located at 225 Cadman Plaza East, Brooklyn
NY, 11201, against defendants Nortel, John Andrew Roth (CEO, President and
Director), William F. Conner (President of Nortel's E-Business Solutions),
Chahram Bolouri (President of Nortel's Global Operations), and Frank Dunn (Chief
Financial Officer). The Honorable Raymond J. Dearie is the Judge presiding over
the case.
The complaint charges that defendants violated Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by
issuing a series of material misrepresentations to the market between January
18, 2001 and February 15, 2001 concerning the demand for its products.
Specifically, the complaint alleges that defendants issued a press release on
January 18, 2001, (after the close of the securities markets) announcing record
operating results for the year 2000, and especially strong fourth quarter of
2000 performance. In the press release, defendants represented that Nortel's
"global reach and industry leading portfolio" would allow it to "continue to
outpace the market and gain profitable market share" even in the face of the
"tightening of capital within the telecom sector." The announcement sent its
stock price soaring 10% in one day. The complaint alleges that the statement was
materially false and misleading when made because the Company had no basis for
reassuring the market that demand for its products would remain robust, given
the economic slowdown that was impacting companies in general and the
telecommunications sector -- upon which Nortel relies -- in particular. On
February 15, 2001, less than a month after issuing its market moving
representations, Nortel issued a press release announcing that it was
drastically lowering its guidance for Nortel's 2001 fiscal year because of
decreased demand for its products due, in large part, to spending cuts by
telecommunications companies. Following the announcement, Nortel's stock price
plunged by 34% in one day, from $29.75 per share to $19.50 per share (erasing
$33 billion of Nortel's market capitalization). Prior to the disclosure of the
true state of its business, individual defendants Bolouri and Conner
collectively sold over $7 million of their personally held Nortel stock.
If you bought the securities of Nortel between January 19, 2001 and February 15,
2001 you may, no later than April 17, 2001, request that the Court appoint you
as lead plaintiff. A lead plaintiff is a representative party that acts on
behalf of other class members in directing the litigation. In order to be
appointed lead plaintiff, the Court must determine that the class member's claim
is typical of the claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one or more class
members may together serve as "lead plaintiff." Your ability to share in any
recovery is not, however, affected by the decision whether or not to serve as a
lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach LLP, or
other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a
170-lawyer firm with offices in New York City, San Diego, San Francisco, Los
Angeles, and Boca Raton and is active in major litigations pending in federal
and state courts throughout the United States. Milberg Weiss has taken a leading
role in many important actions on behalf of defrauded investors, consumers, and
others, and has been responsible for more than $30 billion in aggregate
recoveries. Please contact the Milberg Weiss website for more information about
the firm. If you wish to discuss this action with us, or have any questions
concerning this notice or your rights and interests with regard to the case,
please contact the following attorneys:
Steven G. Schulman or Samuel H. Rudman One Pennsylvania Plaza, 49th fl. New
York, NY, 10119-0165 Phone number: (800) 320-5081 Email:
Nortelcase@milbergNY.com Website: milberg.com |
