Tyco International Ltd. agreed to pay more than $2.9 billion to settle 32 consolidated class-action lawsuits from shareholders, according to U.S. Securities and Exchange Commission documents.Tyco International Ltd. agreed to pay more than $2.9 billion to settle 32 consolidated class-action lawsuits from shareholders, according to U.S. Securities and Exchange Commission documents. Those suits alleged accounting impropriety between former Tyco executives and accounting firm PricewaterhouseCoopers.
In the lawsuits, Former Tyco executives L. Dennis Kozlowski, Mark H. Swartz and Frank E. Walsh Jr. were accused of mismanaging corporate funds and covering it up. Kozlowski and Swartz were convicted in 2005 of stealing more than $600 million.
Plaintiffs agreed to settle claims against the company, as well as co-defendants Michael A. Ashcroft and Mark A. Belnick. Tyco agreed to recover money from Kozlowski, Swartz, Walsh, and PricewaterhouseCoopers, who are not parties to the settlement. Tyco would pay 50 percent of recovered money to the plaintiffs.
The settlement needs to be approved by the U.S. District Court in New Hampshire, Tyco spokesman Paul Fitzhenry said.
Tyco is an industrial products and services company with U.S. headquarters in Princeton, N.J. It is the parent of Tyco Electronics, based in Lower Swatara Township, Dauphin County.