Nortel pays £17.5m SEC fine to settle financial irregularities

Nortel has settled with the US Securities and Exchange Commission (SEC) over previous accounting irregularities and paid a £17.5m fine as a result.

Nortel has 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."




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