PracticeAuditPwC pays out $225m to settle Tyco case

PwC pays out $225m to settle Tyco case

PricewaterhouseCoopers has agreed to pay $225m (£120m) to draw a line under its Tyco problems in the US

The settlement was announced this week, heading off a significant concern for
the US firm. The move follows an agreement whereby shareholders took on claims
against the auditor, while Tyco took on claims against former directors.

The audit claim arose after the telecoms and security giant was embroiled in
a securities fraud lawsuit, when two executives at Tyco were implicated in a
profit manipulation scandal.

Former CEO and CFO Dennis Kozlowski and Mark Swartz were accused of inflating
revenues by $5.8bn, raking in $150m for themselves during the late 1990s and
early 2000s.

Earlier this year Tyco assigned claims against its former auditors to
investors after agreeing to pay $3bn to settle its own case out of court. In
return, the shareholders gave Tyco claims against Kozlowski and Swartz,
receiving half of what the company recoups from the pair.

A spokesman for PwC in the US said it had decided to resolve the litigation
as the cost of defending the case made settlement ‘the sensible choice for the
firm’.

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

3d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

1w Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

1w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor