Time Warner Agrees Settlement Over AOL Revenue Figures
Media giant Time Warner on Wednesday agreed to pay $210 million in penalties
as part of a deferred prosecution agreement reached with the US Department of
Justice (DoJ). This is the end result of a two year probe conducted by the Justice Department
into allegations that several employees with its AOL operation artificially
inflated the ISP's revenue figures. Under the terms of the settlement, in addition to paying its $210 million fine,
Time Warner has pledged its cooperation in the government's investigations of
the AOL employees who perpetrated the fraud. If Time Warner complies with the
deal for the duration of the two year deferral of prosecution period, the DoJ
will dismiss the charges against it. Commenting on the settlement on Wednesday, US Deputy Attorney General, James
Comey announced that: "The agreements we've reached today with America Online and Time Warner
give the company a chance to turn itself around and avoid the consequences of
a criminal conviction." However, some observers have suggested that additional criminal charges could
be brought as the investigation progresses. .
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