In re AOL Time Warner, Inc. Securities Litigation

Mehri & Skalet is one of several law firms involved in In re AOL Time Warner, Inc. Securities Litigation, brought in the United States District Court for the Southern District of New York in September 2002. The complaint alleged that AOL and AOL Time Warner overstated advertising revenues by at least $1.7 billion from January 12, 2001 through July 24, 2002 through the use of sham transactions and improper accounting practices. It also alleged that defendants engaged in this scheme in order to artificially inflate the price of AOL and AOL Time Warner securities, ensure the successful merger of AOL and Time Warner, and allow defendants to sell millions of shares of AOL Time Warner shares at artificially inflated prices.

In August 2005, Plaintiffs’ counsel, led by the firm of Heins Mills & Olson, P.L.C. , announced that a $2.5 billion dollar settlement had been reached. If approved, this settlement will be among the top five securities fraud class action settlements ever. The settlement will benefit millions of shareholders who purchased or acquired AOL and Time Warner securities between January 27, 1999 and August 27, 2002.