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Last Updated: Monday, 16 June, 2003, 22:43 GMT 23:43 UK
Tyco restates accounts again
Tyco worker
Tyco's accounts are being revised again
Tyco, the conglomerate that lost its chief executive to allegations of tax dodging, has been forced to restate its accounts for every year since 1998 after talks with US regulators.

The company, which said in April that it was setting aside $1.1bn to cover unexpected charges, said on Monday that its performance from 1998 to 2001 was worse than what it reported.

But for 2002 and the first half of this year, the numbers will be upgraded.

Tyco - which is incorporated in the tax haven of Bermuda, even though its management remains in the US - insisted there will be no new charges as a result of the restatement.


But investors seeking to sue the company for having allegedly misled them - some say to the tune of $6bn - could find their hand strengthened.

Many of its shareholders are considering taking the company to court as a result of the tenure of former CEO Dennis Kozlowski, who stepped down following allegations that he tried to dodge personal taxes over art acquisitions.

Later, more allegations suggested that he extracted more than $600m from the company.

"You should never be allowed to restate financial statements that would have the effect of inflating future years' earnings because basically you get two bites at the cherry," said Albert Meyer, formerly an analyst at short-seller David W Tice & Associates.

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02 Aug 02  |  Business

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