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Tyco Ponies Up Record $3B in Shareholder Settlement

Posted May 15, 07 3:42 PM CDT in Business 

(Newser) – After years of legal wrangling, Tyco will pay a record $2.975 billion to shareholders who say the company used faulty accounting practices to defraud them. The settlement by Tyco, which became a poster child for executive excess in the wake of the Enron scandal, represents the largest amount ever offered by a single firm in a  corporate-fraud case.

The company had maintained that it was as much as victim of former CEO Dennis Kozlowski as shareholders were. But today's settlement, which ends a federal class-action suit, suggests that the company is willing to pay a high price to move past its legal troubles. Plaintiffs' lawyers interpreted the move more aggressively. Said one lead attorney: "We beat them up.”

Source Financial Times (UK)

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Closing Arguments Begin in Tyco Case   (Getty Images)
The operating headquarters of Tyco International are seen in a West Windsor, N.J. file photo from Feb. 1, 2006. Industrial manufacturing conglomerate Tyco International Ltd., which is planning on splitting...   (Associated Press)
SuperComm 2002 Telecommunications Convention   (Getty Images)
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