The Wall Street Journal (subscription required) reports today that Tyco International Ltd. will “restate its financial results back to 1998 to correct $696.1 million that it mistakenly classified as pretax charges in recent quarters.” It is the fifth time in seven months that Tyco has announced accounting problems. The restatement will not change the overall financial results for the Company during the period in question.
Tyco is a defendant in a securities class action in the D. of N.H.
Quote of note: “The restatements also complicate Tyco’s legal situation in shareholder lawsuits it is facing over scandals that have battered its share price. Once companies restate, plaintiffs no longer have to prove past financial statements were wrong.”