Feeds

Turner, Case, Barksdale named in AOL fraud suit

Billion dollar brains

  • alert
  • submit to reddit

The essential guide to IT transformation

AOL Time Warner inflated its revenues by $1.7 billion, a suit filed yesterday alleges.

It's one of a pair filed on behalf of shareholders, who also allege that former leading executives including Steve Case, Ted Turner and Jim Barksdale profited heavily from insider dealing.

The suit filed in California represents two investors: the University of California and the Amalgamated Bank. It's a racy read, alleging that executives profited by almost $1 billion on either side of the marriage between AOL and Time Warner.

The figures are eye watering. Between July 2000 and November last year, Case pocketed $156 million from the sale of AOL Time Warner stock, Barksdale $119 and Turner $339 million.

A second class action suit filed by the Minnesota State Board of Investments is expected today.

Asked about declining online ad revenues in Fall 2000, the company's then-COO Bob Pittman replied "for this company, I don't see it, and I don't buy it. We are benefiting from the current advertising trends of consolidation in the Internet space. It is actually good for us."

The California suit and a rich history of links can be found at GMSV, which saw the significance of this story early. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?