Nortel Networks has won the approval of two U.S. judges for a US$2.45 billion settlement to resolve lawsuits over accounting fraud.

The Ontario Teachers’ Pension Plan Board was the lead plaintiff in one suit. In the other suit, the lead plaintiff was OPTrust, the administrator of the Ontario Public Service Employees Union Pension Plan.

Shareholders sued the company because Nortel shares dropped following a revision to its financial outlook in 2001 and after it had to restate its results to correct accounting mistakes.

The settlement still requires approval from Canadian courts.

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