Nortel saga rumbles on: new probe launched against directors

11 Aug 2004

Troubled equipment manufacturer Nortel Networks has set up a special committee to investigate allegations of impropriety made by shareholders against some former and current directors and officers of the company. According to the Financial Times, Nortel investors are seeking damages ‘for breach of fiduciary duty’ and have changed their focus to target specific individuals rather than seek damages directly from the company. The firm is also facing class-action lawsuits in the US and Canada.