A group of union and public pension funds that was part of a class-action lawsuit against Tyco International Ltd. has reached a $3 billion settlement with the company, said Allan Jordan, a spokesman for Schiffrin, Barroway, Topaz & Kessler, one of the law firms representing institutional investors. Jay Eisenhofer, partner at Grant & Eisenhofer, said in an interview that the settlement is the largest payment from a single corporate defendant ever.
The suit was filed in 2002 after former Tyco CEO Dennis Kozlowski and other company officers were accused of inflating the value of the companys stock and emptying its coffers. The settlement still has to be approved by the U.S. District Court in New Hampshire and Tyco shareholders, and its not clear when the plaintiffs will receive payouts from Tyco.
Grant & Eisenhofer represents the Louisiana State Employees Retirement System and the Teachers Retirement System of Louisiana, Mr. Eisenhofer said. Other members of the class represented by co-lead counsels Schiffrin, Barroway, Topaz & Kessler, and Milberg Weiss & Bershad were: Plumbers and Pipefitters National Pension Fund, United Association General Officers Pension Plan, United Association Office Employees Pension Plan, and United Association Local Union Officers and Employees.
The groups lawsuit against Tycos auditor, PricewaterhouseCoopers, has not been settled, said Richard Schiffrin, partner with Schiffrin, Barroway, Topaz & Kessler.
With this settlement we are taking an important step to resolve our most significant remaining legacy legal matter, Ed Breen, chairman and CEO of Tyco, said in a news release.