You're right on CedarW.
Don't be dumb. Nortel didn't sue its auditors. It got $4.5 billion from the sale of its patents. Shareholders got nothing in return. The Nortel Newco shares are selling for $0.0061 per share at the Pink Sheets.
Take E & Y's $117 million settlement offer & run. Even though this might be a global settlement on all lawsuits against E & Y, shareholders should count their lucky stars to have lots of other defendants with deep pockets to go after.
There are plenty of 3rd parties - all major Canadian banks including US banks such as Bank of America & sell-side dealers etc. - to settle for big bucks.
Settlement=fraud. Unfortunately, the thieves have executed a perfect heist with no way to recover the stolen goods. They will enjoy a life of luxury at your expense.