More On

Nortel settles claim with long-term disability employees

Bankruptcy court gives settlement preliminary approval

A settlement between what was once one of the country’s largest telecommunications manufacturer and its disabled employees has received preliminary approval from a bankruptcy court.

The bankruptcy judge overseeing the liquidation of assets for bankrupt Nortel Networks Inc. ruled yesterday to allow the settlement to be mailed to the disable employees. The 200 employees will have until April 30 to raise objections to the settlement proposal.

Nortel agreed not to discontinue any of the long-term disability benefits before May 31 “unless the company grants the committee a general unsecured claim of $28 million,” according to Thomson Reuters.

After settlement approval, the employees will receive the general unsecured claim and at that point, have the option to sell. Some of the employees would like an independent auditor to oversee the distribution of funds. 

Read recent labor related stories on InsideCounsel:

Labor: Antitrust concerns with non-hire and non-solicit agreements

5 labor and employment issues to watch in 2013

Risk of relapse counts as disability, says 1st Circuit

Proposed ALJ bias settlement would give thousands of disabled New Yorkers new benefit hearings

Contributing Author

Cathleen Flahardy

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.