Nortel Networks 8-K 2007
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
NORTEL NETWORKS CORPORATION
(Exact name of registrant as specified in its charter)
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Item 1.01 Entry into a Material Definitive Agreement
On October 15, 2007, Nortel Networks Corporation (NNC) announced that it and its principal operating subsidiary, Nortel Networks Limited (NNL), reached a settlement on all issues with the United States Securities and Exchange Commission (SEC) in connection with the SECs investigation of certain prior accounting practices at the company. Nortel Networks Corporation and NNL entered into a Consent agreement whereby, without admitting or denying the SECs allegations, Nortel Networks Corporation agreed to pay a civil penalty of US$35 million and disgorgement in the amount of $1 within 10 business days after entry of the Final Judgment, and NNC and NNL consented to be restrained and enjoined from future violations of the antifraud, reporting, books and records and internal control provisions of federal securities laws. Further, NNC and NNL will provide to the SEC quarterly written reports detailing progress in implementing the companys remediation plan and actions to address its outstanding material weakness in internal controls.
Item 9.01(d) Financial Statements and Exhibits
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: October 19, 2007