PwC to face Tyco lawsuit
Judge gives go ahead to sue
PricewaterhouseCooopers is likely to face a lawsuit from the former
shareholders of conglomerate Tyco International following a ruling by a federal
The ruling opens the way for investors who bought Tyco stock between 13
December 1999 and 7 June 2002 to join the lawsuit.
Some estimates from the period, claim that stock losses totaled some $60bn
(£32bn), WebCPA reported.
Tyco said it would continue to defend itself against the charges.
In April Tyco said it would $50m (£27m) to settle allegations by the
Securities and Exchange Commission that the company inflated its earnings by
more than $1bn (£541m) between 1996 and 2002.
Last September Tyco’s former chief executive Dennis Kozlowski and former
chief financial officer Mark Swartz were convicted of fraud whereby
they inflated the company’s stock price through bad accounting and awarding
themselves huge bonuses.