Nortel Networks fired its top three executives yesterday and said accounting problems already under investigation by regulators ran deeper than expected.
The surprise announcement from North America's largest maker of telecommunications equipment sent its shares plunging as investors speculated that an account review begun last year was developing into a full-blown financial scandal.
The Ontario company said it expected the restatement to cut 2003 earnings by 50 per cent, but losses for previous years would be reduced. It had reported an unaudited 2003 profit of $732 million (€618 million) in January.
The company, which employs around 250 people in Dublin and Galway said chief executive Mr Frank Dunn had been "terminated for cause".
Also fired with cause were chief financial officer Mr Douglas Beatty and controller Mr Michael Gollogly, both placed on paid leave of absence in March.
Asked if they could rule out the possibility of fraud, Nortel officials said it would be "inappropriate" to comment. Nortel is under investigation by the US Securities and Exchange Commission.
