The SEC is planning to fine Nortel Networks as much as $100 million for accounting fraud, The Wall Street Journal says. The fine would settle the firm's fraud charges and allow it move ahead with normal business operations.
Nortel, of course, was investigated by the SEC back in 2004 and it restated its earnings in 2005 because it had overstated its revenue by $3.4 billion. The accounting scandal resulted in the resignation of many top Nortel executives, including then-CEO Frank Dunn.
In recent months the company has made strides to recover from its tumultuous past. In May, the company said its first-quarter revenues would be $2.48 billion, up four percent year-over-year.
For more details:
- see this WSJ article. (sub. req.)