The Associated Press

NEW YORK - Tyco International Ltd. sued its former chief executive officer, Dennis Kozlowski, and former chief financial officer Mark Swartz on Monday, charging the two made more than $40 million in "short-swing" stock trades.

The lawsuit, filed in Manhattan federal court, alleges the two men made dozens of such trades beginning in August 2000.

Under Securities and Exchange Commission rules, the company is allowed to seize any "short-swing" profits made by corporate insiders who buy and then sell the firm's stock within six months.

The suit seeks disgorgement of those profits, plus unspecified fees and costs associated with the case.

Mr. Kozlowski's lawyer did not return calls for comment on the lawsuit.

Mr. Swartz's lawyer Charles Stillman said he and his client "will vigorously contest" the lawsuit.

"We are disappointed that the company saw fit to bring this lawsuit against Mark," Mr. Stillman said.

The two men are out on bail while awaiting trial on charges of stealing some $600 million from Tyco. They face up to 25 years in prison if convicted of enterprise corruption and grand larceny.

Mr. Kozlowski resigned in June before he was indicted on charges of evading New York sales taxes. He is accused of illegally avoiding paying $1 million in sales tax on paintings that were purchased in New York and allegedly shipped to Tyco offices in Exeter, N.H., and then returned to New York.

Tyco's former general counsel, Mark Belnick, has been charged with falsifying business records to cover up $14 million in improper loans. He faces up to four years in prison if convicted. He also faces a civil lawsuit from his former company.

Tyco, a conglomerate that makes products ranging from coat hangers to valves to security systems, is based in Bermuda but is run from Exeter.

In trading on the New York Stock Exchange, Tyco shares fell 46 cents to close Monday at $16.24 each.

Separately, Tyco on Monday announced the appointment of Martina Hund-Mejean as senior vice president and treasurer. Prior to the appointment, Ms. Hund-Mejean was at Lucent Technologies, Inc., where she held the same position. Ms. Hund-Mejean will report to executive vice president and chief financial officer David J. FitzPatrick.