Nortel Faces Another Investigation7/07/2004 9:51 AM Eastern
Nortel Networks Corp. is under scrutiny again.
New York-based law firm Wechsler Harwood LLP said Wednesday that it has begun an investigation into alleged violations of the Employee Retirement Income Security Act of 1974.
The law firm said it will specifically look at “whether the company and certain plan administrators breached their fiduciary duties by negligently misrepresenting and negligently failing to disclose material facts to the plan and the plan participants in connection with the management of the plan's assets and negligently permitting the plan to purchase and hold Nortel stock when it was imprudent to do so.”
In late April, the struggling equipment vendor fired CEO Frank Andrew Dunn, chief financial officer Douglas Beatty and controller Michael Gollogly and said it would delay its first-quarter earnings report, review the past three years’ financial results and restate its 2003 earnings.