Tyco International 17
Tyco International 17 : Corporate Scandal of 2002: Former chairman and chief executive Dennis Kozlowski and former chief financial officer Mark H. Swartz were accused of the theft of more than USD $150 million from the company. During their trial in March 2004, they contended the board of directors authorized it as compensation. During jury deliberations, juror Ruth Jordan, while passing through the courtroom, appeared to dance an "okay" sign on the table. She later denied she had intended that gesture, but the incident received much publicity (including a caricature in The Wall Street Journal), and the juror received threats after her name became public. Judge Michael Obus declared a mistrial on April 4, 2004. On June 17, 2005, after a retrial, Kozlowski and Swartz were convicted on all but one of the more than 30 counts against them. The verdicts carry potential jail terms of up to 25 years in state prison. Kozlowski himself was sentenced to no less than eight years and four months and no more than 25 years in prison. Swartz received the same sentence. Then in May 2007, New Hampshire Federal District Court Judge Paul Barbadoro approved a class action settlement whereby Tyco agreed to pay $2. 92 billion (in conjunction with $225 million by Pricewaterhouse Coopers, their auditors) to a class of defrauded shareholders represented by Grant & Eisenhofer P. A. , Schiffrin, Barroway, Topaz & Kessler, and Milberg Weiss & Bershad
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