SEC to investigate Nortel accounts
Global networking giant Nortel Networks has become the subject of an investigation into its accounting troubles by the US financial services watchdog.
Link: For more business news
The Securities & Exchange Commission has issued a formal order in connection with the company’s financial results for 2000, 2001, 2002 and the first three quarters of 2003 that will cause Nortel to restate previously restated results.
Troubles at Nortel began a month ago when it had to delay filing its annual report because its audit committee wanted more time to examine financial statements.
Nortel has declined to disclose the nature of the investigation by the SEC, but says it has been ‘communicating and cooperating’ with the watchdog since October 2003.
Nortel shares fell 33 cents to $7.94 in Toronto trading yesterday.