Nortel
have agreed to pay $228.5 million as part of a proposed class-action suit settlement by the telecommunications manufacturer, Nortel said Friday.
Nortel is attempting to negotiate a settlement in a New York court.
Nortel has already agreed to pay more than $2 billion in cash and stock to settle the suits, which were filed following a series of accounting scandals at the company. The amount agreed to by the insurers is in addition to what Nortel will pay, the company said.
As part of the proposed settlement, Nortel said it also had agreed to make some changes in corporate governance. Among the changes are the annual election by its directors of a non-executive board chair and the inclusion of a report covering other governance practices to be included in its annual proxy circular and proxy statement.
"The Company and the lead plaintiffs are continuing discussions towards a definitive settlement agreement," Nortel said in a statement. "At this time, there can be no assurance that such an agreement can be reached, that each of the actions noted above can be brought into, or otherwise bound by, the proposed settlement, if finalized, or that the proposed settlement would receive the required court and other approvals."
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