Judges OK $2.45 billion settlement in Nortel case
Two U.S. judges on Tuesday gave their blessings to an estimated $2.45 billion settlement between Nortel Networks Corp. and shareholders, moving the pact closer to final approval.
Nortel and shareholders had agreed in principle to the settlement in February to put an end to class-action lawsuits stemming from an accounting scandal at the telecommunications equipment company. The settlement still requires approval by various Canadian courts.
Under the settlement, the company has agreed to pay $575 million in cash and issue shares equal to about 14.5 percent of its current outstanding equity, worth more than $1.64 billion based on Nortel's current stock value.
