Time Warner Settles Securities Fraud Litigation
A $2.5 billion settlement of the Time Warner Securities Fraud litigation was announced on Wednesday by Lead Plaintiff’s Counsel, Heins Mills & Olson, P.L.C. of Minneapolis, and the defendants. In addition, $150 million recovered by the Department of Justice will be distributed to class members and, subject to consent from the SEC, $300 million recovered by that agency may also be distributed to class members.
Defendant Time Warner is to pay $2.4 billion and its auditor, Ernst & Young, is to pay $100 million. The settlement will benefit millions of shareholders who purchased or acquired AOL and Time Warner securities between January 27, 1999 and August 27, 2002.
The parties will seek preliminary approval of the settlement by the U.S. District Court for the Southern District of New York in September, which will mark three years of prosecution.
[Source: PR Newswire]