The Securities and Exchange Commission (SEC) has launched a investigation into Nortel Networks’ restatement of its financial results as announced in October 2003, and the company’s announcements in March 2004 regarding the likely need to further revise certain previously announced results and restate previously filed financial results for one or more earlier periods. Nortel Network said it is cooperating with the SEC. http://www.nortelnetworks.com
- Last month, Nortel Networks placed Douglas Beatty, its incumbent Chief Financial Officer (CFO), and Michael Gollogly, its incumbent Controller, on paid leave of absence pending completion of an independent review being undertaken by the Nortel Networks Audit Committee.
- Earlier in March, the company delayed the filing of annual financial reports for 2003. Nortel Networks said it is likely that it will need to revise its previously announced unaudited results for 2003 and for certain quarterly reports in 2003. The company also expects to restate its previously filed financial results for one or more earlier periods. An independent financial review is underway.