That comprehensive two-part series The Washington Post ran last week
-- which details some shady methods AOL Time Warner Inc. allegedly used to pump
up ad-sales figures during the past few years -- has sparked at least one
lawsuit.
The Olsen Law Firm said it filed a class-action suit against AOL Time Warner,
alleging that the company violated the Securities Exchange Act by issuing
materially false and misleading statements about ad revenue and improperly
boosting its ad revenue by $270 million.
The firm also alleged that insiders sold tens of thousands of shares while in
possession of adverse nonpublic information concerning AOL Time Warner's
revenues.
'This lawsuit is without merit, and we intend to vigorously contest it in
court,' AOL Time Warner spokeswoman Tricia Primrose said.
AOL Time Warner's accounting has been appropriate, and the company has
'provided our investors with all appropriate material information about our
business,' she added.
