Courts approve settlement in Nortel case

Courts approve settlement in Nortel case

Two U.S. judges have now given their approval to the $2.45 billion settlement between Nortel Networks and their shareholders.

This would help Nortel get closer to the final approval required to go ahead with their settlement. Nortel and shareholders had earlier this year agreed to a settlement to end the series of class-action lawsuits related to the accounting scandal at the company.

Now, this settlement would require approval from various Canadian courts.

The settlement would see Nortel paying $575 million in cash and issue shares equal to about 14.5 percent of its current outstanding equity, worth more than $1.64 billion.

Judge Preska wrote in her decision on this settlement issue: “The settlement is approved as fair, reasonable and adequate. Nortel spokesman Jay Barta added: “We’re very pleased with the progress in settling this suit and putting it behind us.”