Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit against Former Executives of Nortel Corp.

NEW YORK--(Business Wire)--
Coughlin Stoia Geller Rudman & Robbins LLP ("Coughlin Stoia")
(http://www.csgrr.com/cases/nortelcorp/) today announced that a class action has
been commenced in the United States District Court for the Southern District of
New York on behalf of purchasers of the securities of Nortel Corp. ("Nortel")
(NYSE:NTL) between May 2, 2008 and September 17, 2008, inclusive (the "Class
Period"), seeking to pursue remedies under the Securities Exchange Act of 1934
(the "Exchange Act"). Nortel is not named in this action as a defendant because
it and its core operating subsidiaries filed for bankruptcy protection in
January 2009.

If you wish to serve as lead plaintiff, you must move the Court no later than 60
days from today. If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact plaintiff`s
counsel, Samuel H. Rudman or David A. Rosenfeld of Coughlin Stoia at
800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a
member of this Class, you can view a copy of the complaint as filed or join this
class action online at http://www.csgrr.com/cases/nortelcorp/. Any member of the
putative class may move the Court to serve as lead plaintiff through counsel of
their choice, or may choose to do nothing and remain an absent class member.

The complaint charges certain of Nortel`s former executives with violations of
the Exchange Act. Nortel supplies end-to-end networking products and solutions
that help organizations enhance and simplify communications.

The complaint alleges that, throughout the Class Period, defendants failed to
disclose material adverse facts about the Company`s true financial condition,
business and prospects. Specifically, the complaint alleges that defendants
failed to disclose the following adverse facts, among others: (i) that demand
for the Company`s products was declining as carriers cut back their capital
expenditures and other customers deferred purchase decisions; (ii) that the
Company`s financial results were materially overstated as the Company was
failing to properly write down its goodwill; (iii) that the Company`s
restructuring was not meeting with success as the Company was struggling to cut
costs and improve profitability; and (iv) as a result of the foregoing,
defendants lacked a reasonable basis for their positive statements about the
Company, its business, operations, earnings and prospects.

On September 17, 2008, Nortel issued a press release announcing its "preliminary
view on certain third quarter results." The Company also announced that it was
engaging in a "comprehensive review" of Nortel`s business and that "planning"
was "underway for further restructuring and other cost reduction initiatives."
In response to the Company`s announcement, the price of Nortel stock declined
from $5.30 per share to $2.68, on heavy trading volume.

Plaintiff seeks to recover damages on behalf of all purchasers of Nortel
securities during the Class Period (the "Class"). The plaintiff is represented
by Coughlin Stoia, which has expertise in prosecuting investor class actions and
extensive experience in actions involving financial fraud.

Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San Francisco, Los
Angeles, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is
active in major litigations pending in federal and state courts throughout the
United States and has taken a leading role in many important actions on behalf
of defrauded investors, consumers, and companies, as well as victims of human
rights violations. The Coughlin Stoia Web site (http://www.csgrr.com) has more
information about the firm.

Coughlin Stoia Geller Rudman & Robbins LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
djr@csgrr.com

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