Investor lawyers also get approval for $464m in legal fees and $28.9m in expense reimbursement
Accountancy Age, 20 Dec 2007
Investors who sued Tyco International following an accounting scandal which led to the imprisonment of the former CEO, have had a settlement worth $3.2bn approved by a US federal court judge.
Dennis Kozlowski and former Tyco finance chief Mark Swartz were found guilty in June 2005 of stealing millions. Details emerged during the case of a ludicrous spending spree in which Kozlowski used company funds to pay for a $15,000 umbrella stand and a $6,000 shower curtain.
Investors argued during the trial that from December 1999 through June 2002, Tyco and others misrepresented the value of acquisitions and misled them about Tyco's financial health. The settlements were reached before the case ever went to trial.
Despite criticism around the hefty fees claimed by lawyers acting in the case, the court approved about $464m in legal fees and $28.9m in expense reimbursement for the investors' lawyers.
In May Tyco agreed to pay $2.97bn to settle long-running class action suits, while the company's auditors PricewaterhouseCoopers agreed to pay $225m to resolve the litigation, Reuters.com reported.
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