Following their acquittal on criminal charges, the Ontario Securities Commission (OSC) has withdrawn its regulatory allegations against former Nortel Networks executives.
The OSC filed a notice of withdrawal Friday in its case against Frank Dunn, former Nortel CEO, Doulas Beatty, former CFO, and Michael Gollogly, former controller, alleging that the company falsely stated its financial results in several instances under their watch.
In a notice announcing the decision to dismiss the allegations against them, the commission notes that the three former Nortel executives were acquitted of criminal charges in January 2013 by Justice Marrocco of the Superior Court of Justice. Those criminal charges were brought against them in connection with the same earnings disclosures by the company that also formed the basis of the regulatory proceeding against them.
Back in 2007, the OSC brought allegations against them that involved alleged failings in revenue recognition and provisioning in Nortel’s financial statements between 2000 and 2003.