Nortelhas settled with the US
Securities and Exchange Commission (SEC) over previous accounting
irregularities and paid a £17.5m fine as a result.
The civil penalty, said Nortel, will be followed by the firm
providing the SEC with quarterly written reports, detailing its
progress in implementing its remediation plan to address
outstanding weaknesses in internal accounting controls.
This latest settlement by Nortel follows a deal made with the
Ontario Securities Commission, a resolution of shareholder
class actions and remediation work on the majority of weaknesses in
its accounting controls.
Nortel has had to restate financial results going back to the
beginning of the decade, when it was found the company had wrongly
accounted for sales.
Nortel CEO Mike Zafirovski said, "The settlement recognises the
extensive and proactive efforts made by Nortel's board and senior
management to identify and address the accounting and internal
control issues and conduct that led to the investigation. This is a
new Nortel."