Time Warner Forks Over $23M in Fraud Suit

Law360, New York (May 26, 2006, 12:00 AM EDT) -- Time Warner Inc., its America Online subsidiary, auditor Ernst & Young and other defendants have reached a $23 million settlement to resolve claims that they duped four Pennsylvania funds by releasing statements that inflated revenue and by using improper accounting at AOL.

Investors, which filed the suit in 2004 in a state court in Philadelphia, claimed they were misled about the companies’ financial health, which led the four state public funds to lose at least $100 million.

“We filed this lawsuit to maximize our recovery of...
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