Today, the SEC announced a settlement with Tyco International Ltd. The government charged Tyco with violating the securities laws by using improper accounting practices and a scheme involving transactions with no economic substance to overstate its reported financial results by a least one billion dollars.
Without admitting or denying the allegations in the Commission's complaint, Tyco consented to the entry of a final judgment permanently enjoining it from violating the antifraud, proxy disclosure, periodic reporting, corporate recordkeeping, and antibribery provisions of the federal securities laws. The proposed final judgment also orders Tyco to pay $1 in disgorgement and a $50 million civil penalty.
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