According to the Company’s FORM 10-Q For the Quarterly Period Ended March 30, 2007, on March 31, 2007, Tyco filed a motion to dismiss the complaint and the Court granted the motion to dismiss on June 13, 2007.
As summarized by the Company’s FORM 10-K for the fiscal year ended September 30, 2005, the Judicial Panel on Multidistrict Litigation has transferred this action to the United States District Court for the District of New Hampshire. On July 6, 2005, plaintiff filed his motion and brief to vacate the conditional transfer order.
The case is being handled under MDL, case number 1:02-md-01335-PB.
The complaint alleges that defendants, including the CEO, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations during the Class Period, thereby artificially deflating the price of Tyco common stock. Specifically, the complaint alleges that defendants overstated and misrepresented material adverse facts that were known to, or recklessly disregarded, by them and: 1) conspired to encourage the initiation of criminal actions against Dennis Kozlowski, Mark H. Swartz, and Mark A. Belnick in an effort to protect the former members of the Board of Directors from liability; 2) employed a strategy that included, in part, leaking information to the media in an effort to artificially deflate share prices for the benefit of new management; and 3) recklessly disregarded the likelihood of significant dilution of Tyco equity resulting from inefficiencies and additional expenses in implementing this strategy.