Fraudulent representations on financial results

On February 17, 2005, Mr. Clifford W. Skarstedt filed a motion for authorization to institute a class action against the Respondent, Nortel Networks Corporation. The Applicant alleges that Nortel falsely represented its financial results for the year 2003 and seeks to obtain compensation for the damages suffered by the people who purchased Nortel shares between April 24, 2003 and April 27, 2004.

The group covered by the class action sought is as follows:

All persons who, while residing in Quebec, purchased shares of Nortel Networks Corporation, between April 24, 2003 and April 27, 2004.

On June 20th, 2006, an agreement in principle was concluded to settle this class action.

On January 31, 2007, Justice Michèle Monast approved the settlement of this class action. The period to file claims for this case has now expired. However, please take note that class members who filed a valid claim with the Claims Administrator should only expect to receive their payment in several months as a result, among other things, of the delays resulting from the processing of all claim forms.

If need be, we also invite you to visit the Claims Administrator’s web site, or to call its toll-free number at 1-866-881-7495.