Tyco Shareholder Claims that Firm Overcharged

Tyco shareholder Richard Gielata filed a lawsuit Tuesday against the law firm Grant and Eisenhofer in a district court in Wilmington, Del., for exorbitant legal fees in an earlier case involving the electronics components company.

Gielata alleges the lawyers requested hundreds of millions more in fees than they should have for handling a 2007 case in which two Tyco executives inflated revenue and were later imprisoned for fraud. A Securities and Exchange Commission investigation confirmed the revenue inflation and also revealed that Tyco had hidden millions in executive compensation. Grant and Eisenhofer settled the case for $3.2 billion, charging nearly $500 million in legal fees.

Chelsea Hennessy

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