The SEC stated: "Nortel Networks Limited (“NNL”) is Nortel’s principal operating subsidiary and, at all relevant times, NNL and Nortel shared the same management slate, including CEO, CFO, Controller and Assistant Controller. NNL’s financial results are consolidated into Nortel’s publicly reported financial statements. NNL also files periodic reports with the Commission containing its own financial statements. The conduct alleged in the Complaint resulted in NNL materially contributing to Nortel’s misleading financial statements and caused NNL’s own quarterly and annual financial statements and disclosures to be materially false and misleading for at least the periods ending December 31, 2000 through December 31, 2003, and in all filings made with the Commission that incorporated those financial statements and related disclosures by reference, including registration statements."

The SEC stated that: "[It] filed civil fraud charges in the U.S. District Court for the Southern District of New York against Nortel Networks Corporation and its principal operating subsidiary Nortel Networks Limited (Nortel) alleging that Nortel engaged in accounting fraud from 2000 through 2003 to close gaps between its true performance, its internal targets and Wall Street expectations."

The SEC stated that: "[It] filed fraud charges against Nortel Networks Corporation and its principal operating subsidiary Nortel Networks Limited (Nortel) alleging that Nortel engaged in accounting fraud from 2000 through 2003 to close gaps between its true performance, its internal targets and Wall Street expectations."