Nortel Networks Corp. has reached a settlement with the Ontario Securities Commission involving inaccurate financial reporting that led to two major earnings restatements in recent years.

The OSC announced yesterday that a panel of commissioners will hold a hearing on May 22 to consider a proposed agreement reached between OSC staff and Nortel. The OSC will not release details about the settlement agreement with the company until it is approved.

The settlement involves the corporation itself, but does not include three former Nortel executives — chief executive officer Frank Dunn, chief financial officer Douglas Beatty and controller Michael Gollogly — who also face related allegations over the accounting scandal that engulfed Nortel between 2003 and 2006.

The OSC levelled allegations against the trio in March, but did not include the company in the case at that time. No date has been set yet for a hearing in the former executives’ cases.