Court: Nortel Mistakenly Paid Death Benefits To Mike Peterson

DURHAM, N.C. — A federal court has ruled Nortel Networks made an error when it gave Mike Peterson his wife's death benefits.

Kathleen Peterson was employed at Nortel at the time of her death. Mike Peterson received $384,000 from Nortel after he had been arrested and indicted for his wife's murder. He was later convicted and is serving life in prison at Nash Correctional Institute.

Nortel may have to pay the money again to Kathleen Peterson's daughter, Caitlin Atwater.

Nortel claims Atwater waived her right to the money. A trial on that issue is set for next month.