Wednesday, May 16, 2007
Tyco agreed to settle a class action lawsuit brought by purchasers of Tyco stock for nearly $3 billion, the fourth largest class action settlement ever (and the largest involving one defendant). In addition, plaintiffs will receive one-half of any proceeds the company collects in litigation against Dennis Kozlowski and two other executives. Tyco also assigned its accounting malpractice claim against PriceWaterhouseCoopers to the shareholders. See NYTimes, Tyco to Pay $3 Billion to Settle Investor Lawsuits; WSJ, Tyco Accord May Spell Trouble for Auditor.