Among the various step and mis-steps that may have led to Nortel’s downfall, were a series of financial and accounting errors that the company started facing as far back as 2000. The accounting errors had caused Nortel to restate financial statements for 2000, 2001, 2002 and the first and second quarters of 2003.
As a result of the accounting errors, then Nortel CEO Frank Dunn, CFO Douglas Beatty and controller Michael Gollogly were all fired in April of 2004.
In court decision issued on Monday, Justice Frank Marrocco of the Ontario Superior Court of Justice acquitted Dunn, Beatty and Gollogly of the charges against them. The three former Nortel executives had been accused of multiple charges over the handling of Nortel’s accounting practices.