Nortel

(NT)

told investors Tuesday that it continues to check its books.

The company said internal audits were continuing amid an accounting scandal that forced a management change this spring at the Canadian telecom gearmaker. The tumult followed Nortel's decision to restate its financials for the past three years.

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The company said Tuesday that no new material developments had come to light since the last update earlier this month. Back then, Nortel said it couldn't estimate when the review would be done, although it did indicate that it won't be before the end of the current quarter.

The restatement is part of a financial debacle that already cost CEO Frank Dunn his job and took the stock from around $8 in early 2004 to a recent $3.90. Last month, the company said it had received a subpoena from a grand jury conducting a criminal investigation in Texas.

The Brampton, Ont., company is trying to sort out the restatement of each 2003 quarter and for earlier periods, including 2002 and 2001. It's currently up to the third and fourth quarters of 2003.

Nortel said Tuesday's comments came under a Canadian law that forces companies to update investors regularly on their status when they aren't current on financial filings. Nortel plans to update investors every two weeks under the guidelines.