Nortel Networks Corp. has reached a settlement on all issues with the U.S. Securities and Exchange Commission in connection with the regulator’s investigation of certain prior accounting practices at Nortel.

Without admitting or denying the SEC
s charges, Nortel agreed to pay a civil penalty of US$35 million and consented to injunctions against it from violations of certain provisions of federal securities laws.

Further, Nortel will provide to the SEC quarterly written reports detailing its progress in implementing its remediation plan and actions to address its outstanding material weakness in internal controls.

In May, the firm agreed to a settlement with the Ontario Securities Commission. That deal did not involve any administrative penalty or fine. However, the firm did agree to make a payment to the OSC of US$1 million as a contribution towards the costs of the investigation, along with other remediation measures.

“We are pleased that we have reached final resolution in this matter. The settlement recognizes the extensive and proactive efforts made by Nortel’s board and senior management to identify and address the accounting and internal control issues and conduct that led to the investigation,” said Nortel president and CEO Mike Zafirovski, in a release. “Through hard work, a dedication to excellence and an unwavering commitment to serving our customers, Nortel is recreating a great technology company which upholds the highest ethical standards and sound business practices. This is a new Nortel.”

The firm said that the SEC recognized that its audit committee, on its own initiative, conducted extensive internal independent investigations and self-reported to the SEC and other regulators, and that the committee and senior management fully cooperated during the investigation and took prompt and meaningful action to correct the issues and restore the company to sound governance and financial practices.

Some of the actions undertaken by Nortel include: the appointment of a new team of senior leaders with a proven track record of integrity and business leadership; extensive efforts to significantly improve financial processes and controls; a restructured ethics policy; and the establishment of a new code of conduct.