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10. Nortel Networks

Status: Settled 2006
Amount: $2.4 billion

Two separate class-actions covered investors who held Nortel stock from Oct. 24, 2000 through Feb. 15, 2001, and from April 24, 2003 through April 27, 2004. The lawsuits were filed under federal securities laws for fraud.

Nortel was a leading supplier of fiber-optic equipment to emerging Internet companies. After the Internet bust caused the company’s sales to vanish, the company started creating false accounting entries showing steady equipment sales. When the fraud was uncovered, Nortel’s stock eventually fell to $0.47 from a high of $124.

Source: InfoLaw.com

Photo Credit: AP Graphics