Nortel Networks Corp.

Shareholders filed two class action lawsuits against the telecom equipment maker regarding an accounting scandal. Several lawsuits were filed against Nortel for allegedly violating U.S. and Canadian securities laws after it issued revised financial expectations for the 2001 fiscal year. In a tentative agreement, Nortel has agreed to pay $575 million in cash, issue 628.7 million shares and contribute half of the funds recovered from pending lawsuits against former senior officers. The stock portion of the payment would result in a $1.9 billion charge as Nortel's shares recently closed at $3.02. (Feb-08-06) [INTERNATIONAL NEWS SERVICE]