The three accused, former senior executives of Nortel Networks Corporation, were charged with two counts of fraud over $5,000.
The Crown alleged that they deliberately misrepresented Nortel's financial results by manipulating accrued liability balances to meet earnings targets and trigger bonus payments.
The court conducted a detailed review of Nortel's accounting practices, the use of accrued liabilities, and the restatements of its financial results.
The court found that the Crown failed to prove beyond a reasonable doubt that the accused deliberately misrepresented the financial results or that the financial statements were materially misstated.
The accused were found not guilty on both counts.