$2 Billion AOL Settlement

A judge recently approved a $2.65 billion class-action settlement for AOL. Shareholders had “complained that AOL improperly accounted for dozens of advertising transactions, inflating revenue for 15 quarters between 1998 and 2002″ — prior to the AOL/Time Warner merger.

According to the deal approved by [Judge] Kram, Time Warner will pay the bulk of the settlement while its auditor, Ernst & Young LLP, will pay $100 million.

The judge noted that “”the settlement had received overwhelming support by nearly all of the estimated 600,000 claimants,” but that, despite the support, class members would “not recover their entire loss.”

Source: Chicago Tribune