This excerpt taken from the JDSU 10-Q filed Feb 7, 2008.
Nortel Security Litigation
In February 2001, the Company received approximately 65.7 million shares of Nortel Networks Corporation (Nortel) common stock in connection with the sale of its Zurich, Switzerland subsidiary to Nortel. Beginning in February 2001 Nortel has been involved with two class action lawsuits on behalf of persons who purchased Common Shares or call options on Common Shares or wrote (sold) put options on Common Shares during the period from October 24, 2000 through February 15, 2001 (Nortel I Action) in which the Company was an eligible class member, and on behalf of persons who purchased Common Shares or call options on Common Shares or wrote (sold) put options on Common Shares during the period from April 24, 2003 through April 27, 2004 (Nortel II Action). The Company began selling its Nortel common stock in 2001 and had sold all of its holdings by July 2005.
In December 2007, the Company was notified by the claims administrator that its Proof of Claim and Release submitted in relation to the case had been accepted. As a participant in this settlement, the Company expects to receive an unspecified amount of cash and an unspecified number of shares of Nortel common stock. The distribution of cash and shares to participants in the settlement is subject to final court approval by the U.S. District Court for the Southern District of New York, the Ontario Superior Court, the Quebec Superior Court and the British Columbia Supreme Court. As such no gain has been recognized in the financial statements as of December 29, 2007. The Company expects to record a gain related to its share of the settlement when the above courts approve the settlement. As of the date of this filing the Company is not able to provide a reliable estimate of this gain.