US judges have approved a proposed US$2.45bn settlement between Nortel Networks and shareholders. The settlement, which still has to be approval by various Canadian courts, relates to class action lawsuits stemming from the telecommunications equipment maker’s long-running accounting scandal. Under the terms of the settlement, Nortel will pay US$575million in cash and issue shares worth approximately US$1.64 billion, based on current stock value. In addition, Nortel’s insurers will pay US$228.5million, while the settlement also includes half of any money that the company recovers from its own lawsuits against former CEO Frank Dunn and other senior officers.
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