Former Tyco Executive Sues Over Severance

Tyco International Ltd. said the Securities and Exchange Commission is reviewing its fiscal third-quarter and 2001 filings as new Chief Executive Edward Breen conducts a investigation of the conglomerate’s finances dating back to 1999.

Breen is conducting the review to reassure investors and “has no reason to believe there will be any material adjustments,” the company said in the SEC filing.

Tyco said areas the SEC’s review is exploring include “adequacies of disclosures” for acquisition integration plans; liabilities accrued under the purchase accounting method of acquisitions; and how the company records purchases of smaller individual accounts for its security monitoring business.

Breen also certified Tyco’s report for the third quarter ended June 30, even though the company isn’t required to file a certification because it’s based in Bermuda.

Meanwhile, former Tyco chief financial officer Richard D. Power is suing the company on claims that the company owes him more than $9 million in severance pay.

A Tyco spokeswoman declined to comment on the suit.

Tyco shares rose 48 cents to $12.90 on the NYSE.