Frank E. Walsh Jr., a former board member at Tyco International Ltd., agreed to pay the state of New Jersey $5.6 million to settle a 2002 civil suit filed on behalf of the $68.2 billion New Jersey Division of Investment, Trenton, confirmed Lee Moore, spokesman for New Jersey Attorney General Anne Milgram.
Mr. Walsh, an independent director, was charged with taking an improper payment that was not disclosed to investors in connection with Tyco's acquisition of CIT in 2001. He has made no admission of wrongdoing or liability.
The lawsuit — filed against Tyco, Mr. Walsh, former Tyco CEO L. Dennis Kozlowski, former Tyco CFO Mark H. Swartz and the company's auditors — charged that the state's pension funds had suffered significant losses because of insider trading at Tyco, accounting improprieties, fraud and the failure to disclose personal loan benefits.
Tyco had settled with the state for $73.25 million in April 2008; the company's auditors, PricewaterhouseCoopers and its Bermuda affiliate, settled for $5.85 million in March 2009. The lawsuit is still pending against Messrs. Kozlowski and Swartz.
