Two Canadian shareholder class action lawsuits has been settled by Nortel Networks Corp. (TSX:NT) for $575 million US in cash and nearly 629 million Nortel shares once worth almost $2 billion US.
The four suits cover two separate periods, ending in 2001 and 2004, when the telecom equipment company’s shares fell suddenly, reducing the value of what was briefly Canada’s most valuable company.
In the U.S. suits, announced in February, the company has agreed to contribute half of any money recovered in lawsuits against the three executives, in addition to the cash and stock payments.
The firm also noted that various court, regulatory and stock exchange approvals are still required before the settlements can be completed. The settlements contain no admission of wrongdoing by the company or any other defendants, Nortel said.