Tyco International Ltd. v. Walsh

OPINION & ORDER

DENISE COTE, District Judge:

This action arises from a dispute concerning a corporation’s payment of a so-called “finder’s fee” to its lead outside director for his role in facilitating a merger. In July 2001, L. Dennis Kozlowski (“Kozlowski”), the Chief Executive Officer of plaintiff Tyco International, Ltd. (“Tyco”), paid Tyco’s director, defendant Frank E. Walsh, Jr. (“Walsh”), a $20 million fee in connection with Tyco’s acquisition of CIT Group, Inc. (“CIT”). Tyco’s board first became aware of the payment to Walsh in January of 2002. Tyco eventually brought suit against…