Frequently Asked Questions






What was this case about?

On April 17, 2006, the Commission filed its Complaint in this action alleging that from 1996 through 2002 Tyco International Ltd. ("Tyco") violated the federal securities laws by, among other things, fraudulently overstating its financial results, improperly using excess reserves to enhance and smooth those reported earnings, and failing to disclose to investors substantial amounts of senior executive compensation and a large number of related party transactions. On May 1, 2006, this Court entered final judgment (the "Final Judgment") against Tyco, to which Tyco consented without admitting or denying the allegations in the Complaint.

Subsequently, on December 21, 2006, the Commission filed a related case against three former Tyco officers and employees alleging violations related to the accounting misconduct that was asserted in the Commission's action against Tyco. See SEC v. Richard D. Power, Edward Federman, and Richard J. "Skip" Heger, No. 06-CV-15343 (RWS). From late 2007 to 2009, final judgments were entered against all three of the defendants in that action.

The final judgments entered in these matters provided that the Commission may propose a plan to distribute the funds in the Tyco CRIS Account subject to the Court's approval, and that such plan may provide that the funds be distributed pursuant to the SEC Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002, 15 U.S.C. § 7246(a). On August 5, 2009, the Commission submitted its Motion to Establish a SEC Fair Fund and Appoint a Fund Administrator. On August 19, 2009, this Court granted the Commission's motion and entered an Order Establishing a SEC Fair Fund and Appointing a Fund Administrator ("Order"). The SEC Fair Fund consists of all of the funds in the Tyco CRIS Account, together with any funds added to that account prior to any distribution of the SEC Fair Fund, plus accrued interest.

The Order also appointed The Garden City Group, Inc. ("GCG") to serve as the Fund Administrator ("Fund Administrator") to assist in developing a Plan of Distribution of the SEC Fair Fund pursuant to which monies in the SEC Fair Fund will be distributed to investors harmed by the violations alleged in the Complaint. The Order also authorizes the Fund Administrator to oversee the administration of claims and the distribution of the SEC Fair Fund pursuant to the terms of the Plan of Distribution, subject to oversight by the Court.

The Fund Administrator, in consultation with the Commission staff, prepared the Plan of Distribution, and the Commission submitted the Plan of Distribution to this Court for its approval. The Court approved the Plan of Distribution on November 23, 2010.

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Why did I receive a Claim Packet?

You received a Claim Packet because records indicate you may have bought Tyco International Ltd. common stock between December 1, 1997 through March 13, 2003 inclusive. The packet you received is designed to notify you of the approximately $50 million settlement reached in SEC v. Tyco International Ltd. and to inform you that you may be eligible to receive payment from the SEC Fair Fund.

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Who is eligible to participate in the SEC Fair Fund?

You must have who purchased Tyco common stock during the Recovery Period (December 1, 1997 through March 13, 2003).

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Who is excluded from participation in the SEC Fair Fund?

You are excluded from participation in the SEC Fair Fund if you are:

  • A person or entity that was a defendant in the Tyco Class Action, a present or former officer, director or partner of any defendant, or an immediate family member, legal representative, heir, successor or assign of any defendant, officer or defendant, or an entity in which any of the foregoing have or had a controlling interest, unless such defendant was found not liable in the Tyco Class Action prior to the Claims Bar Date, and proof of the finding(s) is included in such defendant's timely filed Proof of Claim form.
  • An employee of Tyco who has been terminated for cause in connection with the violations alleged in the Commission's Complaint in this action or any related Commission action, or who was otherwise terminated or has resigned in connection with the violations alleged in the Commission's Complaint in this action or any related Commission action (or any of such employee's assigns, heirs, immediate family members, or controlled entities);
  • A person who, as of the Claims Bar Date, May 6, 2011, has been the subject of criminal charges related to the violations alleged in the Commission's Complaint in this action, or any related Commission action (or any of his or her Affiliates, assigns, heirs, immediate family members, or controlled entities);
  • A person who assigned his or her right to obtain a recovery in the Commission's lawsuit against Tyco;
  • An assignee of another person's right to obtain a recovery in the Commission's lawsuit against Tyco, provided, however, this provision shall not be construed to exclude those persons who obtained such a right by inheritance or devise.
  • The Fund Administrator, its employees, and those persons assisting the Fund Administrator in its role as the Fund Administrator.

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What is the amount of the SEC Fair Fund?

$50,000,001 plus interest.

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What do I need to do to participate in the SEC Fair Fund?

Unless you were an approved participant in the Tyco Class Action settlement identified below, you must complete and submit a Proof of Claim form, along with the necessary supporting documentation, to the Fund Administrator. The Proof of Claim Form (and supporting documentation) must be filed online or postmarked no later than May 6, 2011.

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Do I need to submit a Proof of Claim Form if I was a participant in the Tyco Class Action?

If you submitted a Proof of Claim form in connection with a claim that was approved by the Court in the Tyco Class Action, you do not need to submit another Proof of Claim form for those approved purchases. If you had additional purchases of Tyco common stock during the Recovery Period, including the periods of December 1, 1997 through December 12, 1999, and June 8, 2002 through March 13, 2003, you must submit a Proof of Claim form to be eligible to recover for those purchases so long as those purchases calculate to a loss under the Plan of Allocation for the Tyco SEC Fair Fund Distribution Plan.

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What do I need to submit with my Proof of Claim Form?

You must document each transaction that you include on your claim form. Acceptable forms of supporting documentation include:

  1. Trade confirmation slips from brokerage firms that list the security name, the name of the beneficial owner, the type of transaction, the date of the transaction, the number of shares, and the total amount of the transaction, OR
  2. Monthly statements from brokerage firms that detail all account activity within a month.

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What is the deadline for submitting my Proof of Claim Form?

This Proof of Claim For must be postmarked no later than MAY 6, 2011 and must be mailed to:

Tyco SEC Fair Fund
c/o The Garden City Group, Inc.
PO Box 9382
Dublin OH 43017-4282

Or, you may file your claim by May 6, 2011 online by clicking here.

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How will I know when the Proof of Claim Form I submit has been received by the Fund Administrator?

The Fund Administrator will acknowledge receipt of your Claim Form by regular or electronic mail within 45 days of receipt. Your claim is not deemed filed until you receive an acknowledgment postcard or e-mail. If you do not receive an acknowledgment postcard or e-mail within 45 days, please call the Fund Administrator toll free at 1 (800) 810-5638.

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Will I be notified if my Proof of Claim Form is deficient?

Yes. If your Proof of Claim form is deficient, you will receive a Claim Deficiency Notice setting forth the reason why the claim is deficient and advising you of the opportunity to cure such deficiency.

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Can a financial institution that served as an advisor to numerous clients file Proof of Claim Forms on their behalf? Can we group all our clients together using this method?

Yes, you may file on behalf of all your clients, provided you are authorized to do so and provide us with that valid written authorization. If you would like to file these claims together, you should file your claims electronically.

Please Note: Claims with 100 or more transactions or on behalf of 20 or more different accounts must be submitted electronically and in the required format. You can obtain the mandatory electronic filing requirements and file layout on this website or you may e-mail the Fund Administrator at eClaim@gcginc.com Any submission not in accordance with the required electronic filing format may be rejected. Proof of authority to submit a Proof of Claim form on behalf of any managed accounts must be submitted with any Proofs of Claim for such accounts. If you intend to file electronically, you can submit and track the history of your claims by using our secure website, GCG ICETM (www.gcgice.com), which is available 24/7. GCG ICETM allows institutional investors to upload electronic claims and documents, track the history and status of submissions, view claim rejections and how to fix them, update contact information, and receive important status alerts via e-mail.

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How much money will I receive if my claim is approved?

Until all claims have been fully processed, it is not possible to determine the amount of any individual payment because the amount will depend on a variety of factors, including the number of valid claims processed, the amount of Tyco common stock that you purchased, and when you purchased and sold these shares. In addition, in order for a claim to be paid, it must equal or exceed the Minimum Payment Amount of $10.

For additional information as to how your claim will be calculated, please view the Plan of Allocation for the Tyco SEC Fair Fund Distribution Plan located on pages 2-3 of the Plan of Distribution Notice.

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Who is the Fund Administrator?

The Court has appointed The Garden City Group, Inc. to serve as the Fund Administrator.

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Where can I obtain a Plan of Distribution Notice and Proof of Claim Form?

You can obtain a Plan of Distribution Notice and Proof of Claim form by either downloading these documents from this website by clicking here or we can mail you these documents if you provide your name and address by clicking here and request that we mail you a Claim Packet.

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How do I get more information?

Additional information regarding the SEC Fair Fund can be found on this website. You can obtain additional information or request copies of forms and notices by calling the SEC Fair Fund's toll-free hotline at 1 (800) 810-5638 in the United States, or by email at Questions@tycosecsettlement.com.

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