A securities class action has been filed against Nortel Networks Corp.

A securities class action has been filed against Nortel Networks Corp. (Ticker: NRTLQ) ("Nortel" or the "Company") on behalf of all common stock securities purchasers from May 2, 2008 through September 17, 2008 (Class Period) in the United States District Court for the Sourthern District of New York.

The Complaint alleges that throughout the Class Period, defendants failed to disclose material adverse facts about Nortel's true financial condition, business and prospects. Specifically, defendants failed to disclose the following adverse facts, among others: (i) that demand for the Company's products was declining as carriers cut back their capital expenditures and other customers deferred purchase decisions; (ii) that the Company's financial results were materially overstated as the Company was failing to properly write-down its goodwill; (iii) that the Company's restructuring was not meeting with success as the Company was struggling to cut costs and improve profitability; (iv) and as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its business, operations, earnings and prospects.

On September 17, 2008, Nortel issued a press release announcing its "preliminary view on certain third quarter results." The Company also announced that it was engaging in a "comprehensive review" of Nortel's business and that "planning" was "underway for further restructuring and other cost reduction initiatives. . ." In response to the Company's announcement, the price of Nortel stock declined from $5.30 per share to $2.68, on heavy trading volume.


Class Period: May 2, 2008 - September 17, 2008
Lead Plaintiff
Deadline: July 20, 2009
Date Filed: May 18, 2009
Court: US District Court, Southern District
Please contact Scott+Scott LLP either via e-mail at scottlaw@scott-scott.com, call (800) 404-7770 or (860) 537-5537, or visit our website at www.scott-scott.com if you would like further information about this lawsuit.