Nortel has settled the charges of alleged fraudulent accounting with the SEC to the tune of $35 million. While the company will pay the civil penalty, it is not admitting or denying any wrongdoing. The settlement also requires Nortel to pay disgorgement of $1. The company also plans to provide the SEC with quarterly written reports detailing its moves to fix its internal controls.
"The settlement recognizes the extensive and proactive efforts made by Nortel's board [of directors] and senior management to identify and address the accounting and internal control issues and conduct that led to the investigation," CEO Mike Zafirovski said in a statement.
For more on Nortel's settlement:
- read this article from the WSJ (sub. req.)