A federal judge has dismissed a class action lawsuit against Tyco International
— a move executives
hope will end questions about the company’s accounting methods and unflattering comparisons to Enron.
“The dismissal of these lawsuits should help allay concerns that have been raised about Tyco’s accounting practices,” CEO L. Dennis Kozlowski said in a
statement released this morning.
Complaints against the conglomerate were based on criticisms of Tyco’s disclosures and accounting practices. The suit consolidated 38 identical actions filed in
various federal courts and alleged violations of the federal securities laws during the period from Oct. 1, 1998 to Dec. 8, 1999.
Tyco, which is based in Bermuda but operates out of Exeter, N.H., is the world’s largest manufacturer of electronic components and also makes undersea
The company is undergoing a restructuring that includes thousands of job cuts
because of the economic slowdown. It’s stock has slumped since
The company has also found itself under a magnifying glass amid concerns about its books and debt load in the wake of the crisis created by the collapse of energy
trader Enron. The company also had been disparaged for the way it accounted for acquisitions.
Other firms, including Portsmouth, N.H.-based Enterasys have faced similar scrutiny after disclosing accounting news.
Shares of TYC were up 0.76, or 3 percent, to 28.26 at midday. In the last 52 weeks, the issue has ranged from 22 to 60.09.