I think it's swell that shareholders of AOL Time Warner soon will be
getting back money from a huge class-action lawsuit settlement.
But it shouldn't have taken so long, coming as it does 1) five years after numerous lawsuits were filed alleging that AOL had engaged in fraudulent bookkeeping to enhance advertising revenues, and 2) two years after the company reached a settlement with the federal Department of Justice and the Minnesota State Board of Investment. (You can read the court settlement document
here.)
And no one's going to be able retire on their class-action check. Estimates in the settlement document indicate that holders of the 3.4 billion affected shares can expect anywhere from 78 cents per share to a big fat zero.
But it's the principle of the thing, right?
Meanwhile, AOL Time Warner gets to avoid long, potentially expensive civil and criminal trials that could have adversely affected its stock price and public image, plus possibly resulted in jail time for some financial employees.
And while the company's $2.85 billion
payoff settlement ain't exactly chicken feed, it is deductible!
Once again, the system works.
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