|
|
|
Appeals court upholds convictions of Tyco executives
Court Watch |
2007/11/16 04:26
|
Their names became shorthand for corporate greed, but former Tyco International Ltd. executives L. Dennis Kozlowski and Mark Swartz have argued they were entitled to the money and perks they were accused of taking. A state appeals court said Thursday it disagreed, upholding the 2005 convictions of ex-CEO Kozlowski and former finance chief Swartz. Their massive theft and purchases of such luxuries as a $6,000 shower curtain came to symbolize corporate excess and cupidity.
"The evidence amply supports the conclusion that defendants took unauthorized bonuses from Tyco in 1999 and 2000," the appeals panel wrote in a 4-0 decision.
Kozlowski, 60, and Swartz, 47, were each sentenced to 8-1/3 to 25 years in prison after being convicted of conspiracy, grand larceny, securities fraud and falsifying business records. Prosecutors say the two amassed $170 million in unauthorized compensation and $430 million through stock manipulation.
The men used the money to finance lavish lifestyles that, in Kozlowski's case, included a $6,000 gold-threaded shower curtain and a $15,000 umbrella stand shaped like a small terrier, according to the prosecution.
Last month, defense lawyers argued before the appellate judges that neither man had taken money _ including bonuses and forgiven loans, money for investments, expensive real estate and personal luxuries _ that he was not due.
During the trial, Kozlowski and Swartz argued that one member of the company's compensation committee had approved some of the bonuses.
But the judges cited testimony showing that all but one compensation committee member had no knowledge of the bonus payments, and that even the defense agreed that only the whole committee had the authority to grant compensation.
The court also noted there was no written record of the payouts in the materials prepared for the compensation committee, and none in the committee's reports to the board.
"The absence of any reference to these transactions in the chain of documentation available to the committee clearly demonstrates defendants' coverup of their thievery," the appellate judges wrote.
|
|
|
|
|
|
|
Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet. |
Law Firm Directory
|
|
Legal News RSS Feed
