Nortel insiders banned from trading for 15 days

18 May 2004

Managers and directors at Nortel Networks have been banned from trading the company’s shares and stock for 15 days, following its failure to file a 2003 annual report or first quarter 2004 results. The company has blamed the delay on the fact that it is restating its financials and investigating possible accounting anomolies. Meanwhile Nortel is also facing a lawsuit from one of Canada’s leading pension funds, which has alleged that the company issued misleading statements to inflate its share price. Shares in Nortel fell 9% on Monday.