Concord, NH: (Jul-06-07) Tyco International shareholders launched a securities class action lawsuit against PricewaterhouseCoopers LLP (PwC), claiming that as Tyco's auditor, PwC failed in its duties as a corporate watchdog at a time when Tyco is alleged to have overstated its income during the class period by $5.8 billion. Shareholders alleged that PwC was in a unique position to uncover the fraud and to prevent the damages to Tyco's shareholders.
In a settlement reached, PricewaterhouseCoopers agreed to pay $225 million to resolve claims relating to the Tyco International securities class action, which had been pending in the United States District Court for the District of New Hampshire. The class includes investors who purchased or acquired Tyco securities from December 13, 1999 through and including June 7, 2002. The settlement with PwC, reached after four years of hard-fought litigation and extensive mediation, represents one of the largest recoveries on record from an outside auditor in the history of securities class action litigation. [PR NEWSWIRE: PWC SECURITIES SETTLEMENT]
