Summary
This 8-K filing from Tyco International Ltd. (Note: The prompt incorrectly identified the company as Johnson Controls International plc. This filing pertains to Tyco International Ltd.) reports on the settlement of a 2002 lawsuit brought by the State of New Jersey. The lawsuit alleged violations of federal and state securities laws due to unauthorized and improper actions by prior management. Tyco International has agreed to pay $73.25 million to settle the claims against the company and certain former directors and employees. As a result of the company's separation into three publicly traded entities in June 2007, Tyco International's share of this settlement is approximately $20 million. The remaining portions are to be covered by Tyco Electronics ($23 million) and Covidien ($31 million). The company has recorded its share of the expense and expects to receive reimbursement from the other entities before the settlement payment is due on June 2, 2008. This settlement will dismiss the litigation against Tyco with prejudice.
Key Highlights
- 1Tyco International Ltd. settled a significant lawsuit filed by the State of New Jersey in 2002.
- 2The lawsuit alleged violations of securities and other laws related to actions by prior management.
- 3The total settlement amount is $73.25 million.
- 4Tyco International's direct financial responsibility for the settlement is approximately $20 million.
- 5Tyco Electronics and Covidien will cover $23 million and $31 million, respectively, as per a prior separation agreement.
- 6The settlement is expected to be paid by June 2, 2008.
- 7The settlement will lead to the dismissal of the litigation against Tyco International with prejudice.