By James Langton

(February 19 – 14:40 ET) – In the wake of his company’s stock tumbling on Friday, Nortel Networks Corp. CEO John Roth took to the stage at the Canadian Club in Toronto this afternoon to answer his critics.

Roth abandoned his planned speech to take on the subject of Nortel’s recent earnings warning, and the conditions that brought it about. Roth insisted that the firm’s warning came as soon as it learned from its sales force that it would not be selling its products as fast as expected. The firm held a board meeting immediately and released its revised guidance right away. He pointed to the fact that the firm does so much of its business in the United States, citing the uncertainty of the depth of the U.S. economic slowdown and the resulting dearth of telecom equipment spending for its surprising troubles.

Roth also dismissed suggestions that he would be forced to resign as a result of this market debacle, insisting that the board has asked him to stay around for at least another year.

He sloughed off questions about the U.S. class action lawsuit filed in the wake of the stock’s Friday meltdown. He referred to shareholder class action suits as a growth industry in the U.S., saying that it was “not unexpected”.

Roth also answered questions about a couple of executives who sold the firm’s stock ahead of the news. He claimed that it would have been smarter for them to sell after the selloff, minimizing their capital gains hit and maximizing the additional stock they’d receive under the company’s retention plan.

Regarding the recent purchase of a Zurich-based plant from JDS Uniphase, which was completed for $4.5 billion in Nortel stock, Roth said that deal closed before the market trouble. His response suggested that it’s tough luck for JDS.

Roth also took a swipe at the Toronto Stock Exchange during his speech, joking that Nortel is the only Canadian company with the power to shut down the TSE at will “any day of the week.” Referring to the TSE’s frequently failing systems, he noted, “I’d really like to see that fixed,” since many Canadians are forced to trade in New York to when the TSE stumbles.