TRENTON, N.J. – Tyco International Ltd. (TYC) said Monday it has agreed to pay the Securities and Exchange Commission $50 million to settle charges related to allegations of accounting fraud by the high-tech conglomerate's prior management.
The regulatory agency had accused Tyco of inflating operating earnings, undervaluing acquired assets, overvaluing acquired liabilities and using improper accounting rules, company spokeswoman Sheri Woodruff said.
"The accounting practices violated federal securities laws," she said.
However, Woodruff said the company did not admit any wrongdoing under the settlement, which the SEC announced late Monday morning.
"This is a result of something we inherited, and we're glad it's behind us," she told The Associated Press.
Tyco shares rose 6 cents to $26.07 in morning trading on the New York Stock Exchange.
The SEC had been investigating Tyco's accounting practices under former chief executive L. Dennis Kozlowski and former chief financial officer Mark Swartz. The two were convicted last June on charges of grand larceny, conspiracy, securities fraud and falsifying business records. Both are appealing their convictions.
Kozlowski and Swartz resigned in 2002 after being indicted, and current chairman and chief executive officer Ed Breen took over that July. The manufacturing conglomerate moved its operating headquarters to West Windsor, N.J., in 2003 but has its official headquarters in Bermuda.
Tyco makes electronics, medical supplies, engineered products and services, and fire and security services, including its ADT Security business.