Kozlowski can’t collect Tyco benefits, court rules
NEW YORK (Bloomberg) Ex-Tyco International Ltd. chief executive officer Dennis Kozlowski, imprisoned for stealing from the company, can't collect tens of millions of dollars in benefits he claims Tyco owes him, a judge said.US District Judge Thomas Griesa in New York ruled that Kozlowski's 2005 state-court conviction on 22 criminal counts shows that he was disloyal to Tyco, a former Bermuda-based corporation now based in Switzerland, and isn't entitled to any pay he claims he earned from September 1995 to June 2002, when he was forced out.
“Kozlowski's multiple breaches of his fiduciary duty over several years clearly demonstrate his faithless service,” Griesa wrote. “Kozlowski must therefore forfeit all compensation and benefits, deferred or otherwise, earned during his period of disloyalty.”
The ruling comes in a suit Tyco filed against Kozlowski in 2002. As of October 2008, the value of Kozlowski's retirement account was $75.9 million, according to the court papers in the suit.