Nortel timeline

Timeline of troubles

2003

Oct. 23

Nortel said that as a result of an asset and liability review, it intends to restate its financial results for 2000, 2001 and 2002, and the first and second quarters of 2003.

Frank Dunn, president and CEO, said, “The challenges that faced Nortel Networks and our industry over the past few years were unprecedented. It is clear now that in such a volatile environment, errors were made.’’

An independent review, called the Nortel Networks Audit Committee, began investigating.

Dunn

2004

March 15

CFO Douglas Beatty (right) and controller Michael Gollogly were placed on paid leave. They were fired in June.

April 5

The U.S. Securities and Exchange Commission opened an investigation.

April 13

The Ontario Securities Commission opens an investigation.

April 28

Dunn was fired. Nortel appointed Bill Owens, a director of the company since February 2002, as president and CEO.

June 30

The U.S. District Court in New York consolidated 27 class action complaints that had been filed against Nortel and certain former officers.

Aug. 16

The Royal Canadian Mounted Police launched a criminal probe.

Sept. 10

The U.S. District Court in the Southern District of New York filed the consolidated class action complaint, alleging that Nortel, certain directors and certain former officers violated U.S. securities laws, including by making materially false and misleading statements.

Beatty

Owens

  

2005

Jan. 11

Nortel completed filing its audited financial statements for the year 2003, as well as 2003 annual reports that reflect the restatement of the years ended 2001 and 2002, and the revision of previously announced results for the year ended 2003.

March 4

Gary Daichendt was appointed president and COO reporting to Owens.

March 31

Gary Kunis, formerly chief science officer at Cisco, was named CTO.

April 29

Nortel announced that it had filed audited financial statements for the year 2004 and related annual reports on Form 10-K and corresponding Canadian filings.

June 1

Nortel announces first quarter 2005 earnings. CEO Bill Owens says, “I am pleased that we are now current with our financial reporting; this is an important milestone for Nortel as we move forward with our strategic plan.”

June 10

Daichendt, a former Cisco executive, resigned because of management differences with Owens. Kunis followed his colleague out the door. Owens, vice chairman and CEO, assumed these responsibilities.

Daichendt

Kunis

Back to feature: Nortel's uphill battle

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