Nortel under SEC microscope

Nortel this week said the SEC has opened up a formal investigation of the company following restatements of financial results.

Up to now, the SEC had an "informal inquiry" into Nortel's actions, the company stated.

Last month, Nortel said it would delay filing its 2003 annual report after an internal audit begun last fall uncovered a need to revise its previously announced unaudited results for the full year and results in some of its quarterly reports for 2003.

Nortel also said it would restate its previously filed financial results for one or more earlier periods.

The action led the company to put its CFO and controller on paid leave. Nortel says it has been and will continue to cooperate with the SEC in its investigation.

Nortel plans to announce limited preliminary unaudited financial results for the first quarter of 2004 on April 29.

This story, "Nortel under SEC microscope" was originally published by The Edge.

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