For those investors/speculators who purchased Nortel shares between Oct. 24, 2000 and Feb. 15, 2001 or between April 24, 2003 and April 27, 2004 , you may have been eligible for a piece of the Nortel class action lawsuit. I received that letter a few years ago acknowledging the lawsuit so I submitted my proof of ownership to see what would happen soon after. To be honest, I didn’t have very high expectations.
When I posted about my biggest investing mistake, I painfully explained how I purchased shares of Nortel while I was on work term with, who else, Nortel. This was back in late 2000/early 2001 when the shares fell from it’s high of $120 down to around $60.
As a student, I thought that no one could lose buying Nortel at a 50% discount! Boy was I wrong, I put a portion of my life savings ($3,000) to buy the “bargain”. As we all know now, Nortel isn’t worth much. In perspective, today the stock is worth $0.80 pre-reverse split ($8.00 after their 10-1 reserve split). Imagine the killing I would have made if I had shorted the stock at $60 instead of buying! Hindsight is 20/20.
Back to the Nortel class action lawsuit and settlement. I submitted my information a few years ago not expecting much in return. Years have past, and I was convinced that I didn’t qualify for a portion of the settlement. Low and behold when I least expected, I received a letter from the litigation lawyers late last week!
The letter explained that all qualified claims were entitled to 7% of the “recognized claim“. The letter then went on to explain what my “recognized claim amount” was with an attached cheque as my piece of the settlement. I must admit that I was a little disappointed that they considered my recognized claim to be only $545 USD. However, I’ll also admit that I didn’t dig too deep to figure out how it was calculated.
Out of the $3000 or so that I lost, I received a cheque for $41.02 CAD. Yes, you read right, forty one dollars. It’s $41 that I didn’t expect, but somehow it’s still unsatisfying.
If the Nortel Class Action lawsuit or settlement affects you, you can find the official information here.
Did anyone here submit information to the Nortel litigation lawyers for a piece of the settlement? If so, how much did you get back as a portion of your loss?If you would like to read more articles like this, you can sign up for my free weekly money tips newsletter below (we will never spam you).