Nortel Networks -- who had a spectacular fall from glory in a huge accounting scandal that was marred by other scandals like Enron and WorldCom -- looks about ready to settle multiple lawsuits from investors over its past troubles by offering a $2.5 billion settlement offer.The company wants to quash seven lawsuits claiming Nortel misled investors in the United States, Ontario, Quebec and British Columbia, according to the law firm that represents the Nortel shareholders.
Terms of the deal are this: Nortel will pay $575 million in cash and will issue common shares representing 14.5% of its current equity, worth about $1.7 billion based on Nortel's current stock price. Nortel's insurers will pay $228.5 million.
