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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (29550)	2/12/2002 12:31:32 PM
From: Softechie	Respond to of 99280

Lawsuit: Nortel Induced Employees To Invest In Co Stock 12 Feb 12:10 WASHINGTON -(Dow Jones)- A purported class action lawsuit has been filed against Nortel Networks Corp. (NT), charging that the company improperly induced participants in a company retirement plan to buy company stock, according to a regulatory filing Tuesday. The suit charges that Nortel engaged in "material misrepresentations and omissions" to persuade participants in the Nortel Networks Long-Term Investment Plan to buy and keep company stock. The lawsuit, filed under the Employee Retirement Income Security Act, seeks "plan-wide" relief and seeks an unspecified amount of damages, according to Tuesday's filing made by Nortel with the Securities and Exchange Commission. Nortel said it "intends to vigorously defend this lawsuit." The lawsuit covers the period from March 7, 2000, when the stock closed at a split-adjusted $61.22 a share, to Dec. 21, 2001, when the stock closed at $7.13 a share. The stock recently traded at $6.31. The management of employee retirement plans has come under increasing scrutiny after employees of bankrupt Enron Corp. (ENRNQ) accused company executives of encouraging investments in company stock while selling shares themselves. The Nortel lawsuit was filed in the Middle District of Tennessee on Dec. 21, according to Tuesday's filing. Nortel, of Brampton, Ontario, designs, makes and markets telecommunications equipment. -By Tony Cooke, Dow Jones Newswires; 202-628-8905; tony.cooke@dowjones.com (This story was originally published by Dow Jones Newswires) Copyright (c) 2002 Dow Jones & Company, Inc. All Rights Reserved