In this class action, Plaintiff alleges that, beginning in 2001, Nortel Networks Limited (“NNL”), Nortel Networks Inc. (“NNI”), Qwest Communications International Inc., Thomas N. Salzano, Alexander L. Wolf and Robert J. Fine (“Defendants”) and third party NorVergence, Inc. defrauded persons and businesses by inducing them to enter into equipment leases without disclosing that the leases purported to create an absolute obligation to pay, regardless of any telecommunications services actually delivered and even though the value of the equipment was far less than the leased price.
NNL and NNI are currently debtors in bankruptcy proceedings pending before the Ontario Superior Court of Justice in Canada and the United States Bankruptcy Court for the District of Delaware, respectively. Plaintiff and Defendants NNL and NNI (the “Settling Nortel Defendants”) have reached a settlement.
The important terms of the settlement are: (1) Settlement Class members who file valid, timely claims will receive a cash payment, which will be calculated as a share of the net distributions on an allowed general unsecured bankruptcy claim totaling $400,000 against NNI.
The amount of each Settlement Class member’s payment is unknown at this time, and shall depend on (i) the number of Settlement Class members who submit timely, valid claims; (ii) the percentage recovery for general unsecured creditors on allowed claims in NNI’s bankruptcy proceedings; and (iii) the costs of this notice and class settlement administration, which will be deducted, together with a $10,000 incentive award for the class representative, from the amount recovered on the $400,000 allowed claim before any distribution (of the remaining amount) is made to the Settlement Class members.
Who’s Eligible
Class Members of the NorVergence settlement include: “All persons, including businesses, in the United States of America and its territories who, between January 1, 2001 through June 30, 2004, entered into a written agreement with NorVergence, Inc. for the lease of one or more Matrix boxes, Matrix SoHo boxes, or other network equipment provided by NorVergence, Inc.”
Potential Award
To be determined. The amount each claimant will receive depends on several factors, including the number of Class Members who submit timely and valid claims.
Proof of Purchase
N/A. Claimants must attest under the penalty of perjury that the information submitted in the Claim Form is true and correct.
Claim Form Deadline
4/13/2017
Case Name
Wanland & Associates Inc. v. Nortel Networks Corporation, et al., Case No. 3:05-cv-01191-MLC-TJB, in the U.S. District Court for the District of New Jersey
Final Hearing
5/24/2017
Settlement Website
Claims Administrator
Wanland & Associates Inc. v. Nortel Networks Corp., et al.
Settlement Administrator
c/o Kurtzman Carson Consultants (KCC)
P.O. Box 43446
Providence, RI 02940-3446
1-888-240-4541
[email protected]
Class Counsel
SCHNADER HARRISON SEGAL & LEWIS LLP
CAFFERTY CLOBES MERIWETHER & SPRENGEL LLP
ROSENFELD HAFRON SHAPIRO & FARMER
Defense Counsel
LITE DEPALMA GREENBERG LLC
CLEARY GOTTLIEB STEEN & HAMILTON LLP
