On October 24, 2006, the Court entered the Mandate from the U.S. Court of Appeals for the First Circuit, affirming the judgment of the District Court.
According to the Company’s FORM 10-Q For the Quarterly Period Ended March 31, 2006, the Judicial Panel on Multidistrict Litigation transferred the action to the United States District Court for the District of New Hampshire. Thereafter, the Company moved to dismiss the complaint. On December 22, 2004, plaintiff moved to amend the complaint. The proposed amendment asserts causes of action under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder against Tyco International Ltd. and the Company’s current Chief Executive Officer, and seeks to add as defendants the Company’s former Chief Financial Officer and PricewaterhouseCoopers LLP, the Company’s former independent auditors. As against the individual defendants, the complaint asserts a cause of action under Section 20(a) of the Securities Exchange Act of 1934. On March 25, 2005, the United States District Court for the District of New Hampshire granted plaintiff's motion to amend. Plaintiff filed an amended complaint that day. On March 28, 2005, the Court denied defendants' motion to dismiss the original complaint, without prejudice to the defendants' ability to move against the amended complaint. On April 25, 2005, defendants moved to dismiss the consolidated amended class action complaint. On September 2, 2005, the United States District Court for the District of New Hampshire entered a Memorandum and Order dismissing the amended complaint. On October 18, 2005, plaintiff filed a notice to appeal in the United States District Court for the District of New Hampshire and briefing has begun.
Several putative stockholder class action lawsuits were filed in 2003 against Tyco International Ltd. and its officers. In May 2003, the first of these class action lawsuits was filed in United States District Court, Southern District of Florida. This action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the Class Period which statements had the effect of artificially inflating the market price of the Company's securities.