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Two Corporate Scandals Take Steps Toward Resolution
Tyco International Ltd. and Siemens, two multinational conglomerates that have been embroiled in corporate scandals, saw steps taken to resolve the controversies. Both companies have medical divsions that could be affected by the fallout.Tyco this morning announced it will pay nearly $3 billion to settle claims filed by shareholders in the wake of misconduct by top executives, some of whom were convicted of defrauding the company to line their own pockets.
May 15, 2007
1 Min Read
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It is the largest-ever settlement by a single corporate defendant in a class-action suit, reports the Associated Press. Tyco is spinning off its healthcare division, which will be called Covidien.Siemens yesterday saw two former executives convicted of bribery, reports the New York Times. As part of the judgment, the company was fined more than $50 million. Its two most senior executives resigned last month in the wake of the scandal. The company says it will appeal. But the damage to its reputation -- which is now one of institutionalized bribery -- is already done. Indeed, such damage is why Tyco's medical division is losing the Tyco name.
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