Wechlser Harwood Halebian & Feffer Announces Class Action Lawsuit Against Nortel Networks Corp.

The law firm of Wechsler Harwood Halebian & Feffer LLP announces that a class action lawsuit was filed on February 21, 2001, on behalf of purchasers of the securities of Nortel Networks Corp.,("Nortel" or the "Company") (NYSE: NT)(TSE: NT) between January 19, 2001 and February 15, 2001, inclusive (the "Class Period").

The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between January 18, 2001 and February 15, 2001 concerning the demand for its products. Specifically, the complaint alleges that defendants issued a press release on January 18, 2001, (after the close of the securities markets) announcing record operating results for the year 2000, and especially strong fourth quarter of 2000 performance. In the press release, defendants represented that Nortel's "global reach and industry leading portfolio" would allow it to "continue to outpace the market and gain profitable market share" even in the face of the "tightening of capital within the telecom sector." The announcement sent its stock price soaring 10% in one day. The complaint alleges that the statement was materially false and misleading when made because the Company had no basis for reassuring the market that demand for its products would remain robust, given the economic slowdown that was impacting companies in general and the telecommunications sector -- upon which Nortel relies -- in particular. On February 15, 2001, less than a month after issuing its market moving representations, Nortel issued a press release announcing that it was drastically lowering its guidance for Nortel's 2001 fiscal year because of decreased demand for its products due, in large part, to spending cuts by telecommunications companies. Following the announcement, Nortel's stock price plunged by 34% in one day, from $29.75 per share to $19.50 per share (erasing $33 billion of Nortel's market capitalization). Prior to the disclosure of the true state of its business, individual defendants Bolouri and Conner collectively sold over $7 million of their personally held Nortel stock.

If you bought the securities of Nortel between January 19, 2001 and February 15, 2001 you may, no later than April 17, 2001, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood Halebian & Feffer LLP, or other counsel of your choice, to serve as your counsel in this action.

  Wechsler Harwood Halebian & Feffer LLP
  488 Madison Avenue, New York, New York 10022
  Telephone: 877-935-7400 (toll free)
  Ramon Pinon, Shareholder Relations Department, rpinoniv@whhf.com

SOURCE: Wechsler Harwood Halebian & Feffer

Contact: Ramon Pinon, Shareholder Relations Department of Wechlser
Harwood Halebian & Feffer, rpinoniv@whhf.com

Website: http://www.whhf.com/