Tyco agrees to $50 million settlement

By Scott Files

Published on April 17, 2006

The company was accused of improper accounting rules that included inflating operating earnings and overvaluing acquired liabilities.

Sherri Woodruff, a Tyco spokesman said that "The accounting practices violated federal securities laws." However, Woodruff said the company did not admit any wrongdoing under the settlement, which the SEC announced late Monday morning. Ms. Woodruff further stated, "This is a result of something we inherited, and we're glad it's behind us," she told the Associated Press.

Tyco shares rose six cents to $26.07 in morning trading on the New York Stock Exchange.

Former Chief Executive Dennis Kozlowski and Chief Financial Officer were both convicted last June on charges of conspiracy, securities fraud and grand larceny. Both are currently appealing their convictions.

Tyco makes medical supplies, fire and security devices, electronics, engineered products and services and also maintains its ADT Security business.

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