NEW YORK, Oct. 1, 2003 (PRIMEZONE) -- Wolf Popper LLP has filed a securities class action complaint against TyCom, Ltd. (NYSE:TCM), Tyco International, Ltd. (NYSE:TYC), L. Dennis Kozlowski, Mark H. Swartz, and Neil R. Garvey on behalf of purchasers of TyCom common stock between July 26, 2000 and December 18, 2001, inclusive (the "Class Period"). The action is pending in the U.S. District Court for New Jersey (Index No. 03-CV-03540).
TyCom became a public company on July 26, 2000 by the issuance of approximately 60 million shares of its common stock (equivalent to approximately 10% of TyCom's shares outstanding) in an initial public offering pursuant to a Registration Statement. Each of the individual defendants were signatories to that Registration Statement.
This action is the only action seeking recovery for purchasers of TyCom securities.
The Complaint alleges, among other things, that during the Class Period, defendants made materially false and misleading statements about the underlying purpose for TyCom's July 26, 2000 IPO and failed to disclose that the true purpose for the offering was to generate "bonuses" that would be used by Kozlowski and Swartz and approximately 40 other Tyco officers to repay approximately $100 million in undisclosed and unauthorized loans from Tyco. The Complaint further alleges that the Registration Statement misrepresented and failed to disclose in its summary compensation table, tens of millions of dollars of other unauthorized loans and payments from Tyco to the individual defendants.
On December 18, 2001, having realized their goals of generating bonuses to repay the outstanding loans, defendants caused Tyco to acquire the minority interest of TyCom at a price approximately 50% below the offering price of those shares in July 2000. Members of the plaintiff class who purchased shares of TyCom common stock pursuant to the Registration Statement suffered a decline in value of those shares of approximately one billion dollars.
Any member of the proposed class who desires to be appointed lead plaintiff in this action must file a motion with the Court no later than October 6, 2003. Questions or information regarding investors' rights in the class action, including the right to be designated a lead plaintiff, should be addressed to:
Wolf Popper LLP, Robert C. Finkel, Esq. 845 Third Avenue, New York, NY 10022-6689 Tel.: 212.451.9620, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704 Email: irrep@wolfpopper.com; website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca