Time Warner Settles With Opt-Outs

Time Warner, Inc. (NYSE: TWX) has settled the claims of five large institutional shareholders who opted-out of a 2005 settlement of the the securities class action against the company over accounting fraud at AOL. Under the opt-out settlement, Time Warner will pay $400 million, $246 million of which will go to the University of California, with other smaller amounts being paid to the California Public Employees Retirement System, Amalgamated Bank, and two pension funds for Los Angeles County employees. The University of California claims that it will receive “between 16 and 24 times what we would have gotten through the class.” The Wall Street Journal Law Blog and the New York Sun have reports on the settlement. Best In Class thinks it may be the largest opt-out settlement ever.