Tyco To Pay $50M To Settle SEC Fraud Charges

Law360, New York (April 17, 2006, 12:00 AM EDT) -- Accused of inflating revenue by $1 billion over a six-year period, industrial conglomerate Tyco International Ltd. has agreed to pay $50 million to the U.S. Securities and Exchange Commission to settle fraud charges against its former management.

The SEC’s complaint, settled as it was filed in the U.S. District Court for the Southern District of New York, accused the company of using illegal accounting practices to shield transactions with no economic substance in order to overstate its financial results between 1996 and 2002.

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