Time Warner Settles

Time Warner Inc. (NYSE: TWX), the world’s largest media company, has announced the preliminary settlement of the securities class action pending against the company in the S.D.N.Y. The suit alleges that AOL inflated its revenue between January 1999 and August 2002 as part of a scheme to gain approval for its merger with Time Warner. Reuters reports that the settlement is for $2.4 billion.

Addition: Co-defendant Ernst & Young has agreed to settle the claims against it for $100 million.

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