Monday, July 09, 2007

PWC reaches $225 Million Settlement In Tyco Case

PricewaterhouseCoopers has agreed to pay $225 million to settle fraud claims relating to the Tyco International securities class-action suit, according to attorneys for the plaintiffs. Here are stories from Dow Jones Newswires and Reuters.
The suit, filed in New Hampshire federal court, alleged that as Tyco’s auditor PricewaterhouseCoopers failed in its auditing duties. The settlement with PricewaterhouseCoopers, combined with a recent settlement with Tyco, will bring the total class-action settlement to more than $3.2 billion by the time it is presented to the court for final distribution. By comparison, to date, payouts in the Enron and Worldcom suits have topped $7 billion and $6 billion, respectively.
Dennis Kozlowski, Tyco’s former chief executive, and Mark Swartz, Tyco’s former finance chief, were convicted in 2005 of looting Tyco and are serving prison sentences in New York. Tyco is pursuing its own claims and those of shareholders against the two men.

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