The settlement with PwC, reached after four years of hard-fought litigation and extensive mediation, represents one of the largest recoveries on record from an outside auditor in the history of securities class action litigation.

Combined with the recent settlement with Tyco -- the largest ever by a single corporate defendant --- the PwC settlement will bring the total settlement to more than $3.2 billion by the time it is presented to the court for final distribution, inclusive of interest. Investors who purchased or acquired Tyco securities from Dec. 13, 1999, through and including June 7, 2002, are covered by the settlement.

Shareholders alleged that as Tyco's auditor, PwC was in a unique position to uncover the fraud and to prevent the damages to Tyco's shareholders. However, PwC is alleged to have failed in its duties as a corporate watchdog at a time when Tyco is alleged to have overstated its income during the class period by $5.8 billion. 

Defendants Dennis Kozlowski (Tyco's former CEO) and Mark Swartz (former CFO) have been sentenced to up to 25 years in prison after being convicted
of grand larceny, falsification of business records and conspiracy for their roles in the alleged scheme to defraud investors. Former Tyco board
member Frank Walsh has also pled guilty to committing fraud.