Accounting News

Thursday, July 19, 2007
PricewaterhouseCoopers Settles in Tyco Shareholders

Big Four accounting firm PricewaterhouseCoopers (PwC) has agreed to pay $225 million to Tyco International Inc shareholder in a settlement of a class action lawsuit.

The lawsuit is in response to the $5.8 billion overstatement of income declared by Tyco. The shareholders argued that PwC should have uncovered the fraud in their audits of the company.

After four years of litigation the shareholder received a total of $3.2 billion from PwC and the Tyco International In. The settlement covers new shares purchased between 12/13/99 and 6/6/02. The settlement must still be approved by a judge.

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