The dismissal of the claims is a major boost to the group, which has seen its share price tumble in recent times on investor concerns. The company share price reacted positively on the news, climbing almost $0.90, more than 3%, to $28.40.
This follows Tyco recently announced plans to divide up its empire into four separate companies to allay investor fears and in response to revelations concerning Enron’s use of aggressive accounting policies and special purpose vehicles.
The combined lawsuits, which date back to December 1999, alleged violations of the federal securities laws during the period from October 1998 to December 1999.
L. Dennis Kozlowski, the Tyco chairman and CEO, said the dismissal of the lawsuits would ‘help allay concerns that have been raised about Tyco’s accounting practices’.
‘We remain focused on the key task of unlocking shareholder value,’ he added.
Last year Tyco had revenues in excess of $36bn. The company is audited by PricewaterhouseCoopers LLP.
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