The shares amount to more than US$7 million and were sold a few weeks after the telecommunications giant released strong fourth-quarter results on Jan.18.
Court documents filed as part of a class action lawsuit against Nortel Networks Corp. and four senior executives construe the company and the four executives allegedly misled investors about product demand at a time when Nortel was continuing to "outpace the market and gain profitable market share," the Globe and Mail reports.
William F. Connor, president of Nortel's e-business solutions division, and Chahram Bolouri, president of the company's global operations, were the senior executives who sold their stock, even though the Nortel shares had gained more than 10 percent one day later.
None of the allegations have been proven in court.
