ADT 2007 Annual Report Download - page 124

plaintiffs’ motion to reconsider. This case was included in the proposed settlement of the Securities
Class Action, which settlement is contingent upon this case being dismissed.
As previously reported in our periodic filings, on April 29, 2005, an action was filed against Tyco in
the United States District Court for the Southern District of Florida, Stevenson v. Tyco
International Ltd., et al. Plaintiff named as additional defendants our current Chief Executive Officer,
Edward Breen, our former Chief Financial Officer, David FitzPatrick, our former Executive Vice
President and General Counsel, William Lytton, current members of Tyco’s Board of Directors
including Dennis Blair, Bruce Gordon, John Krol, Carl McCall, Mackey McDonald, Brendan O’Neill,
Sandra Wijnberg, and Jerome York, as well as former members of Tyco’s Board of Directors, including
Michael Ashcroft, Joshua Berman, Richard Bodman, John Fort, Steven Foss, Wendy Lane, James
Pasman, Peter Slusser and Joseph Welch. The complaint asserts causes of action under Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The
complaint alleged that defendants made material misrepresentations that resulted in artificially deflated
stock prices. The Judicial Panel on Multidistrict Litigation transferred the action to the United States
District Court for the District of New Hampshire. On March 31, 2007, Tyco filed a motion to dismiss
the complaint and the Court granted the motion to dismiss on June 13, 2007.
On January 31, 2003 a civil action was filed by three plaintiffs in the United States District Court
for the District of New Jersey, Cirella v. Tyco International et al. Plaintiff named as defendants Tyco
International Ltd., Dennis Kozlowski, Mark H. Swartz and Mark A. Belnick. The Judicial Panel on
Multidistrict Litigation has transferred the action to the United States District Court for the District of
New Hampshire. This case was included in the proposed settlement of the Securities Class Action,
which is contingent upon the case being dismissed.
As previously reported in our periodic filings, on January 20, 2004, a complaint was filed in the
United States District Court for the Southern District of New York, Ballard v. Tyco International Ltd., et
al. Plaintiffs are trustees of various trusts that were allegedly major shareholders of AMP, Inc., a
company acquired by Tyco in April 1999. Plaintiffs name as defendants Tyco, five of its former officers
and directors and PricewaterhouseCoopers LLP (‘‘PWC’’). As against all defendants, the complaint
asserts causes of action under Sections 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
promulgated thereunder, and Section 11 of the Securities Act of 1933. As against the Tyco defendants,
the complaint asserts causes of action under Section 14(a) of the Securities Exchange Act and
Rule 14a-9 promulgated thereunder; Section 12(a)(2) of the Securities Act; and for common law fraud
and negligent misrepresentation. As against the individual defendants, the complaint asserts causes of
action under Section 20(a) of the Securities Exchange Act and Section 15 of the Securities Act. The
complaint alleges that defendants engaged in a scheme to artificially inflate Tyco’s earnings and to
mislead investors as to Tyco’s positive earnings, growth and acquisition synergies prior to and in
connection with its acquisition of AMP, Inc. The Judicial Panel on Multidistrict Litigation transferred
the action to the District of New Hampshire. Tyco moved to dismiss the complaint, and that motion
was denied. On August 5, 2005, defendant Michael A. Ashcroft’s motion to dismiss with respect to the
plaintiffs’ claims under Sections 10(b) and 20(a) of the Securities Exchange Act, Section 15 of the
Securities Act, and common law fraud and negligent misrepresentation claims was granted.
As previously reported in our periodic filings, a complaint, Sciallo v. Tyco International Ltd., et al.,
was filed on September 30, 2003 in the United States District Court for the Southern District of New
York. The plaintiffs purport to be former executives of U.S. Surgical who traded their U.S. Surgical
stock options for Tyco International, Ltd. stock options when Tyco acquired U.S. Surgical on October 1,
1998. Plaintiffs name as defendants Tyco International Ltd. and certain former Tyco directors and
executives. The complaint asserts causes of action under Section 10(b) of the Securities Exchange Act
of 1934 and Rule 10b-5 promulgated thereunder, for common law fraud and negligence, and violation
of New York General Business Law Section 349, which prohibits deceptive acts and practices in the
conduct of any business. The complaint alleges that defendants made materially false and misleading
32 2007 Financials