Nortel faces class action lawsuit over alleged misinformation
19.02.2001 10:28:52, Europe (AFX)
LONDON (AFX) - Nortel Networks Corp is facing a class action lawsuit by shareholders following alleged misinformation regarding the company's outlook ahead of last week's profit warning, shareholders' law firm Milberg Weiss Bershad Hynes & Lerach LLP said.
The complaint focuses on a press release issued by Nortel on Jan 18, wherein the company stated its "global reach and industry leading portfolio" would allow it to "continue to outpace the market and gain profitable market share" even in the face of the "tightening of capital within the telecom sector."
The complaint alleges that the statement was materially false and misleading when made because the Nortel had no basis for reassuring the market that demand for its products would remain robust, given the economic slowdown that was impacting companies in general and the telecommunications sector in particular. wf/jfr
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
19.02.2001 10:28:52, Europe (AFX)
LONDON (AFX) - Nortel Networks Corp is facing a class action lawsuit by shareholders following alleged misinformation regarding the company's outlook ahead of last week's profit warning, shareholders' law firm Milberg Weiss Bershad Hynes & Lerach LLP said.
The complaint focuses on a press release issued by Nortel on Jan 18, wherein the company stated its "global reach and industry leading portfolio" would allow it to "continue to outpace the market and gain profitable market share" even in the face of the "tightening of capital within the telecom sector."
The complaint alleges that the statement was materially false and misleading when made because the Nortel had no basis for reassuring the market that demand for its products would remain robust, given the economic slowdown that was impacting companies in general and the telecommunications sector in particular. wf/jfr
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
