Time Warner to pay $405 million to settle AOL's claims
By Our Corporate Bureau | 24 Feb 2007
New York: US media group Time Warner Inc said in a regulatory filing that it has agreed to pay $405 million to settle lawsuits brought by shareholders related to past accounting problems at AOL.
The owners of the movie studios Warner Bros, AOL Internet service and HBO cable network said the agreement was to settle suits from shareholders who opted out of an earlier settlement.
The disclosure was part of the company's routine filing with the US Securities and Exchange Commission.
Time Warner said other suits remain, with plaintiffs claiming about $3 billion in damages with interest.
Till this week, the company has about $217 million remaining in its legal reserves. During the fourth quarter of 2006, Time Warner created an additional $600 million reserve.