Nortel (NYSE: NT) is seeking to settle the class action lawsuits brought against the company as a result of the accounting scandal that led to restated earnings and resignations or firings of several executives.
Nortel said Friday that a mediator has been appointed to “oversee settlement negotiations”.
“The appointment was pursuant to a request by Nortel and the lead plaintiffs for the Courts’ assistance to facilitate the possibility of achieving a global settlement encompassing these two actions,” Nortel said in a statement “The settlement discussions before the mediator will be confidential and non-binding on the parties and without prejudice to their respective positions in the litigation. In the event the parties reach agreement, any such proposed resolution would be subject to the Courts’ approval.”
The lawsuits have been consolidated into two periods, from Oct. 24 2000 to Feb. 15 2001 and April 24, 2003 through April 27 2004. The cases are being handled in federal courts in New York.