Time Warner Settles With the SEC

Mar 21, 2005  •  Post A Comment

Media giant Time Warner said Monday it has reached a settlement with the Securities and Exchange Commission over charges the company inflated data figures at its America Online unit. Time Warner agreed to pay $300 million to close the case.

The widely anticipated settlement removes a cloud that has hung over Time Warner since 2000, when it was revealed that AOL had engaged in securities fraud when it inflated online advertising revenue and subscriber numbers. In December the company reached an agreement with the Department of Justice in connection with the same fraudulent activity and at the time agreed to pay $210 million to settle the criminal charges leveled against the company.

As part of Monday’s settlement, Time Warner agreed to adjust its accounting for the 2000 fourth quarter through the year 2002 and to hire an independent examiner to help the company audit its books.