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This settlement is closed!
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A settlement has been reached in a class action lawsuit alleging Nortel Networks Limited, Nortel Networks Inc., NorVergence Inc., and others defrauded consumers and businesses by failing to disclose that equipment leases created an absolute obligation to pay, regardless of the type of telecommunication services delivered.
If you entered into a written agreement with NorVergence Inc. for the lease of one or more Matrix boxes, Matrix SoHo boxes or any other network equipment provided by NorVergence Inc. between Jan. 1, 2001 and June 30, 2014, you may be entitled to payment from the NorVergence class action settlement.
Plaintiff Wanland & Associates Inc. initially filed the NorVergence class action lawsuit in 2005, accusing the defendants of defrauding thousands of small and medium-sized businesses out of millions of dollars by inducing them to buy telecommunications service packages and sign “equipment lease” documents.
“Those ‘equipment leases’ required the ‘lessees,’ including Plaintiff, to pay thousands of dollars to lease equipment which was, in reality, worth very little,” the NorVergence class action lawsuit states. “Worse, the ‘leases’ purported to create an absolute obligation to pay. Thus, even though NorVergence has filed bankruptcy and stopped providing telecommunications services, thousands of businesses whose telephones have been shut off have been and are forced to continue making their ‘lease’ payments.”
The plaintiff asserts that Nortel participated and profited from the NorVergence scheme by supplying products and services and by allowing NorVergence to use its name and logo to induce businesses to become customers of NorVergence.
The Nortel Networks defendants are reportedly debtors in bankruptcy proceedings that are pending in Canada and in the U.S. Bankruptcy Court for the District of Delaware. Settlement payments will be made from a $400,000 bankruptcy claim against Nortel.
Class Members who would like to opt out of or object to the NorVergence settlement must do so no later than Feb. 27, 2017. Any objections to the Nortel bankruptcy plan must be made by Jan. 9, 2017.
Who’s Eligible
Class Members of the NorVergence settlement include: “All persons, including businesses, in the United States of America and its territories who, between January 1, 2001 through June 30, 2004, entered into a written agreement with NorVergence, Inc. for the lease of one or more Matrix boxes, Matrix SoHo boxes, or other network equipment provided by NorVergence, Inc.”
Potential Award
To be determined. The amount each claimant will receive depends on several factors, including the number of Class Members who submit timely and valid claims.
Proof of Purchase
N/A. Claimants must attest under the penalty of perjury that the information submitted in the Claim Form is true and correct.
Claim Form
Claim Form Deadline
4/13/2017
Case Name
Wanland & Associates Inc. v. Nortel Networks Corporation, et al., Case No. 3:05-cv-01191-MLC-TJB, in the U.S. District Court for the District of New Jersey
Final Hearing
5/24/2017
UPDATE: The Nortel Networks, NorVergence Matrix Box Class Action Settlement was granted final approval on June 29, 2017. According to the settlement website, settlement checks may not be mailed until December 2018 or later. Top Class Actions will continue to provide updates as we learn more. Keep checking back and let us know when you receive a check in the comments section below or on our Facebook page.
Settlement Website
Claims Administrator
Wanland & Associates Inc. v. Nortel Networks Corp., et al.
Settlement Administrator
c/o Kurtzman Carson Consultants (KCC)
P.O. Box 43446
Providence, RI 02940-3446
1-888-240-4541
Info@NetworkEquipmentClassAction.com
Class Counsel
SCHNADER HARRISON SEGAL & LEWIS LLP
CAFFERTY CLOBES MERIWETHER & SPRENGEL LLP
ROSENFELD HAFRON SHAPIRO & FARMER
Defense Counsel
LITE DEPALMA GREENBERG LLC
CLEARY GOTTLIEB STEEN & HAMILTON LLP
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7 thoughts onNortel Networks, NorVergence Matrix Box Class Action Settlement
I worked at NorVergence Inc. back in 2003. When I discovered their fraud and Tom Salzano’s past, I wrote about it in Google Groups under an alias. NorVergence sued me (for telling the truth) and won a default judgment against me for 1.5 million Dollars. They made my life a living hell.
**The Court granted final approval to the settlement on June 29, 2017. However, please note that settlement checks will not be mailed until all funds have been received from the Settling Nortel Defendants. Because the bankruptcy estate cannot make final payments until all claims are resolved, this process may take a year or more, and SETTLEMENT CHECKS MAY NOT BE MAILED UNTIL DECEMBER 2018 or later.**
Is there any update on this case?
Update?
No word on when claims will be paid. You can contact the settlement administrator to inquire about the status of your claim: Info@NetworkEquipmentClassAction.com
Are these the small boxes that Time Warner Cable was pushing at its consumers in New York State?
no they are not