SEC to probe Nortel results

6 Apr 2004

The US Securities and Exchange Commission (SEC) has launched a formal investigation into Nortel’s results restatements. Last October the Canadian equipment manufacturer announced it would restate results from 2000 to the first half of 2003 and last month revealed it would probably restate results for the second half of 2003 and possibly for one or more additional periods. The company subsequently placed its CFO on paid leave of absence. It is not immediately apparent what specific matters the SEC is investigating; some analysts have suggested that it is more likely to be a case of sloppy book keeping than any criminal wrongdoing.