Settlement details have not been disclosed, but it is likely to be substantial after Tyco argued that Mr Kozlowski – jailed in 2005 for massive fraud -- should return $505.8 million in compensation and benefits to the company, reports Inside Counsel.
In a statement, Schaffhausen-headquartered Tyco said: ‘An agreement in principle was reached today between the parties. Because this is a matter of on-going litigation, we have no additional comments about the case.’
Settlement in the case -- which dates to 2002 -- came just three days before a trial was set to decide on the damages Tyco should receive.
Mr Kozlowski is currently serving a sentence of between eight to 25 years in prison, and was denied parole in April as the New York Parole Board thought his release would ‘deprecate the seriousness’ of his crimes. He will not appear before the board again until April 2014.