Summary
This 8-K filing from Tyco International Ltd. (which appears to be the registrant, not Johnson Controls International plc, based on the content) reports a significant development regarding the settlement of multiple class action lawsuits. On May 14, 2007, Tyco and co-defendants reached a Memorandum of Understanding to settle 32 purported class action lawsuits. This settlement involves a substantial payment of $2.975 billion to the certified class and the assignment of Tyco's claims against its former auditor, PricewaterhouseCoopers, to the class. Furthermore, Tyco will also pursue claims against former executives L. Dennis Kozlowski, Mark H. Swartz, and Frank E. Walsh, Jr. The company will pay the class 50% of any net recovery from these claims. While Tyco and other defendants deny wrongdoing, the company will incur a $2.975 billion charge in the current fiscal quarter related to this settlement. The settlement is contingent on final court approval and the opt-out percentage of the class.
Key Highlights
- 1Tyco International Ltd. has entered into a Memorandum of Understanding to settle 32 class action lawsuits.
- 2The settlement requires a payment of $2.975 billion to the certified class.
- 3Tyco will assign its claims against former auditor PricewaterhouseCoopers to the class.
- 4The company will also pursue claims against former executives Kozlowski, Swartz, and Walsh, sharing 50% of net recovery with the class.
- 5Tyco and other settling defendants deny any wrongdoing or legal liability.
- 6A significant charge of $2.975 billion will be incurred in the current fiscal quarter due to the settlement.
- 7The settlement is subject to final court approval and an opt-out provision for class members.