Nortel Securities Class Action Settlement is 5th Largest in History
May 3, 2007 LAWFUEL – The Law Jobs Law Newswire – Michael Himmel led a firm team that secured a $2.45 billion settlement, the fifth largest securities class action settlement in history, from Nortel Networks Corp., a Canadian telecommunications company. The team also included partner Christopher S. Porrino and numerous associates.
Mr. Himmel represented the Department of the Treasury of the State of New Jersey and its Division of Investment—the New Jersey state pension fund and a lead plaintiff in the case—which sued Nortel on behalf of millions of shareholders of Nortel common stock. In the lawsuit In re Nortel Networks Corp. Securities Litigation, originally filed in 2004, these shareholders alleged that Nortel and its officers engaged in accounting fraud.
The ultimate $2.45 billion settlement comprised $575 million cash from Nortel directly; more than $228 million cash from Nortel’s insurers; and 14.5 percent of the equity in the company—in excess of 62 million shares of Nortel common stock. The settlement was global in scope and recently received approval from courts in the United States and Canada.
The case involved highly complex facts and accounting principles, requiring sophisticated tactics and strategies; discovery alone involved some 20 million documents.
Mr. Himmel has a national practice in white collar criminal defense and complex business litigation, representing both plaintiffs and defendants. His clients include private and public corporations and their officers and directors, as well as professionals and federal and state officials and entities, in matters involving such areas as tax fraud, securities fraud, political corruption, antitrust, bank fraud, and environmental matters. Mr. Himmel was an Assistant District Attorney in Bronx County, New York, and later served as an Assistant U.S. Attorney for the District of New Jersey.