PEMBROKE, Bermuda, May 15 /PRNewswire-FirstCall/ -- Tyco International
Ltd. ("Tyco") (NYSE: TYC; BSX: TYC) today announced it has entered into an
agreement to settle most of the securities class action lawsuits involving
Tyco stock and the conduct of former management of the company.
Under the terms of the proposed settlement agreement, Tyco will
establish in the near term a $2.975 billion cash settlement fund for
payment of plaintiffs' claims in the consolidated securities class action
cases. The settlement is subject to court approval and the participation of
plaintiffs holding a significant percentage of Tyco shares in the class.
Tyco Chairman and Chief Executive Officer Ed Breen said: "With this
settlement we are taking an important step to resolve our most significant
remaining legacy legal matter. 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 settlement stems from a complaint filed in January 2003 on behalf
of a class of shareholders who purchased or otherwise acquired publicly
traded securities of Tyco during the period from December 1999 to June
2002. The class was certified by the U.S. District Court for the District
of New Hampshire in June 2006. Most of the cases were transferred to the
Judicial Panel on Multidistrict Litigation for coordination of discovery.
The settlement also involves cases encompassing the class period from
October 1, 1998.
In connection with the settlement, the company will incur a charge of
$2.975 billion in the current quarter.
About Tyco
Tyco International Ltd. is a global, diversified company that provides
vital products and services to customers in four business segments:
Electronics, Fire & Security, Healthcare, and Engineered Products &
Services. With 2006 revenue of $41 billion, Tyco employs approximately
240,000 people worldwide. More information on Tyco can be found at
http://www.tyco.com.
Forward-Looking Statements
This release may contain certain forward-looking statements. These
statements are based on management's current expectations and are subject
to risks, uncertainty and changes in circumstances, which may cause actual
results, performance or achievements to differ materially from anticipated
results, performance or achievements. All statements contained herein that
are not clearly historical in nature are forward-looking and the words
"anticipate," "believe," "expect," "estimate," "plan," and similar
expressions are generally intended to identify forward-looking statements.
The forward- looking statements in this release include statements
addressing the following subjects: future financial condition and operating
results. Economic, business, competitive and/or regulatory factors
affecting Tyco's businesses are examples of factors, among others, that
could cause actual results to differ materially from those described in the
forward-looking statements. Tyco is under no obligation to (and expressly
disclaims any such obligation to) update or alter its forward-looking
statements whether as a result of new information, future events or
otherwise. More detailed information about these and other factors is set
forth in Tyco's Annual Report on Form 10-K and 10-K/A for the fiscal year
ended Sept. 29, 2006 and in Tyco's Quarterly Report on Form 10-Q and for
the fiscal quarter ended March 30, 2007.
SOURCE Tyco International Ltd.
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Related links:
http://www.tyco.com/
CONTACT:
Media, Paul Fitzhenry, +1-609-720-4261,
pfitzhenry@tyco.com, or Investors, Ed Arditte, +1-609-720-4621,
or Karen Chin, +1-609-720-4398
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