MINNEAPOLIS, Aug. 3 /PRNewswire/ -- A $2.5 billion dollar settlement of
the Time Warner Securities Fraud litigation was announced today by Lead
Plaintiff's Counsel, Heins Mills & Olson, P.L.C. of Minneapolis, and the
defendants. In addition, $150 million recovered by the Department of Justice
will be distributed to class members, and, subject to consent from the SEC,
$300 million recovered by that agency may also be distributed to class
members.
The settlement is among the top five securities fraud class action
settlements ever and is the second largest in history paid by an issuer of
securities and its auditor. Defendant Time Warner is to pay $2.4 billion and
its auditor, Ernst & Young, is to pay $100 million. The settlement will
benefit millions of shareholders who purchased or acquired AOL and Time Warner
securities between January 27, 1999 and August 27, 2002.
The parties will seek preliminary approval of the settlement by the U.S.
District Court for the Southern District of New York, Hon. Shirley Wohl Kram,
in September.
The lawsuit has been prosecuted since September 2002. The Court appointed
Heins Mills & Olson, P.L.C. in January 2003 as Lead Plaintiff's counsel to
represent a class of AOL and Time Warner shareholders that includes millions
of individuals and entities. Defendants include AOL and Time Warner, certain
of their executives and Ernst & Young. Lead Plaintiff, appointed by the Court,
is the Minnesota State Board of Investment.
"We believe this settlement is not only a significant recovery for
stockholders, but also demonstrates the important role of securities fraud
litigation in maintaining integrity in capital markets. We look forward to
presenting the settlement for the Court's approval," said Samuel D. Heins, of
Heins Mills & Olson, P.L.C.
SOURCE Heins Mills & Olson, P.L.C.
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Related links:
http://www.heinsmills.com
CONTACT:
Samuel D. Heins of Heins Mills & Olson,
P.L.C., +1-612-338-4605, sheins@heinsmills.com
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