Pricewaterhouse to pay $225 mln in Tyco settlement
(Adds quotes, background; adds BOSTON to dateline)
BOSTON/NEW YORK, July 6 (Reuters) - PricewaterhouseCoopers LLP said on Friday it will pay $225 million to settle a class-action case brought by investors in Tyco International Ltd. (TYC.N) following the accounting scandal at the diversified manufacturer.
The settlement with the auditing firm, combined with a recent settlement with Tyco that was previously announced, brings the total settlement to more than $3.2 billion, according to a statement from law firm Grant & Eisenhofer and two other law firms representing the plaintiffs.
Tyco last month agreed to pay $2.975 billion into a fund for plaintiffs in 32 class-action lawsuits that resulted from an accounting scandal that sent former Chief Executive Dennis Kozlowski to prison.
The settlement is still subject to approval by U.S. District Court in Concord, New Hampshire.
"PricewaterhouseCoopers has decided to resolve the vast majority of the Tyco litigation involving the firm by joining the global settlement previously announced," said PricewaterhouseCoopers spokesman David Nestor. "While PwC was prepared to continue to defend all aspects of its work in the litigation process, the cost of that defense and the size of the securities class action made settlement the sensible choice for the firm."
Kozlowski and former Tyco finance Chief Financial Officer Mark Swartz were found guilty in June 2005 of looting $600 million from the conglomerate. The case became one of the best-known cases of the excesses of corporate America when it became clear that Kozlowski had used company funds to pay for luxury items including a $6,000 shower curtain and a $15,000 umbrella stand.
Kozlowski, who is now serving a sentence of up to 25 years at a New York prison, left the company in 2002.
The company has since spun off Tyco Electronics Ltd. (TEL.N) and Covidien Ltd. (COV.N) to shareholders.
"This is more a formality today in terms of the filing of the full settlement agreement with the court," said Tyco International spokesman Paul Fitzhenry.
(Additional reporting by Ben Klayman in Chicago)
((Reporting by Scott Malone in Boston and Martha Graybow in New York, editing by Gerald E. McCormick; Reuters Messaging: rm://firstname.lastname@example.org; Telephone: +1 617-367-4176; Boston.Newsroom@reuters.com))
((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit topnews.session.rservices.com
* BridgeStation: view story .134 For more information on Top News: topnews.reuters.com)) Keywords: TYCO SETTLEMENT
(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN06196946
- Tweet this
- Share this
- Digg this