Former Nortel Execs Free of 9-Year-Old Securities Class Action

A pair of former Nortel Networks Corp. executives are free of a class action begun in 2009 after a federal judge held that their alleged misstatements aren’t enough to support a securities law claim.

Nortel’s investors didn’t show Mike Zafirovski and Pavi Binning misled them about Nortel’s finances, and even if they had, they didn’t show the executives consciously or recklessly misbehaved, according to a U.S. District Court for the Southern District of New York opinion. The court dismissed the case April 11. Zafirovski was formerly the CEO of Canadian telecommunications equipment firm Nortel, while Binning was its chief ...