Publish date:

Tyco to Settle Claims

The company will pay nearly $3 billion.
Author:

Tyco International

(TYC)

agreed to pay nearly $3 billion to settle most of the securities class action lawsuits that had had been filed against the company and its previous management, including Dennis Kozlowski, the now-imprisoned former chief.

Under the terms of the proposed deal, Tyco will establish a $2.975 billion cash settlement fund to pay plaintiffs' claims.

TheStreet Recommends

"With this settlement we are taking an important step to resolve our most significant remaining legacy legal matter," said Tyco Chairman and Chief Executive Ed Breen in a press release Tuesday. "Our balance sheet and cash flow remain strong and will allow us to readily absorb these costs while removing much of the uncertainty around legacy legal matters."

The company will incur a charge of $2.975 billion in the current quarter.

Shares of Tyco were down 0.8% to $31.95 in premarket trading.