Cable & Telecom

Nortel to pay out US$2.5 billion in cash and shares

TORONTO - Nortel announced today that it has signed an agreement in principle to settle two major class action lawsuits filed in New York. The lawsuits were the result of Nortel's much-documented accounting and financial woes, which have since been cleaned up. "Our intent is to achieve a fair resolution of these lawsuits and avoid a prolonged, uncertain and costly litigation process," said Harry Pearce, Nortel's chairman of the board, in a statement. "A final settlement would remove a significant impediment to Nortel's future success and allow (new president and CEO) Mike Zafirovski and the Nortel team to move forward."...