Tyco agreed to pay almost $3 billion to settle action suits brought by investors who claim they were defrauded. The money will go into a fund that will be distributed to plaintiffs from 32 separate suits. The deal, which is the largest class-action settlement by a single company, is still subject to court approval.

In 2005, Tyco's former C.E.O. and C.F.O. were convicted of stealing $600 million from the firm. Both are serving prison sentences. In addition, the Securities and Exchange Commission accused Tyco of using accounting tricks to inflate profits and hide executive compensation.

Tyco investors could also share in any proceeds the company recovers from other outstanding litigation,the New York Times reports. The firm has ongoing legal battles against former chief executive Dennis Kozlowski, along with other former officialsand its former auditing firm, PricewaterhouseCoopers. The fraud at Tyco became notorious following revelations of a $6,000 shower curtain and a $15,000 umbrella stand in Kozlowski's apartment.

It's still unclear how much money each shareholder will receive as part of the settlement, and the Times points out that the plaintiffs attorney will likely seek a substantial portion as compensation.

Tyco's stock rose slightly on the news. The company is in the process of splitting into three different entities: Tyco International, Tyco Electronics, and Covidien, which will consist of Tyco’s health-care businesses.

The company will take a charge in its third quarter to cover the settlement.