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The AAO Weblog covers accounting issues and current events as they relate the practice of investment analysis.

May 17

Written by: Jack Ciesielski
5/17/2007 3:33 AM 

Tyco International, the company that made shower curtains an element of corporate intrigue, will settle class-action investor suits for almost $3 billion, as reported in the New York Times and International Herald Tribune. At this stage, it's unclear what shareholders will clear: there are still millions to pursue from the principal characters like Dennis Kozlowski and Mark Swartz. Bigger variable: the lawyers' cut is not known yet, either.

The Wall Street Journal reports that this could be the fourth largest shareholder settlement ever. And investors might be able to pursue auditor PricewaterhouseCoopers on the grounds that they should have detected the fraud. PwC was not part of the settlement, so it could still be open season on them.