Companies

Tyco pays $3bn over fraud

Tyco International has agreed to pay nearly $3bn to settle shareholder lawsuits brought over the fraud carried out by the US industrial conglomerate’s former management.

Dennis Kozlowski, former Tyco chairman and chief executive, and Mark Swartz, former chief financial officer, were in 2005 convicted of stealing hundreds of millions of dollars from the company.

The shareholder suits arise from a complaint filed in January 2003 on behalf of investors who purchased Tyco shares from December 1999 to June 2002.

Ed Breen, current Tyco chairman and chief executive, said: “With this settlement we are taking an important step to resolve our most significant remaining legal matter. Our balance sheet and cash flow remain strong and will allow us to readily absorb these costs while removing much of the uncertainty around legacy legal matters”.

June 2007