N.H. lawsuit filed over Tyco split-up
A group of institutional investors that are already part of a class action lawsuit against the company have sued to block Tyco International’s proposed three-way breakup plan, saying it is a ploy to shield assets.
The group filed the suit Tuesday in U.S. District Court in Concord on Tuesday.
The plaintiffs – made up of trade union and public pension funds — also are co-lead plaintiffs in a securities class action seeking damages from Tyco related to losses that they claim cost investors as much as $97 billion as a result of the accounting scandals under the conglomerate’s former CEO, L. Dennis Kozlowski, who last year was sent to prison for his role in looting the company of hundreds of millions of dollars.
In January, Tyco’s board approved a plan to split into three separate publicly traded companies early next year — Tyco Healthcare, Tyco Electronics and a combination of Tyco Fire & Security and Engineered Products & Services.
According to the new lawsuit, Tyco refused to provide plaintiffs with any specific information regarding plans to share liability among the three new companies to be formed as a result of the split-up and would not provide assurances “that it will take steps to ensure that the ability of class members in the securities action to satisfy an award of damages will not be compromised by the proposed reorganization.” – JEFF FEINGOLD