SEC Charges Eight Former AOL Execs

[RobRich]

Eight former AOL executives are the defendants in charges filed by the the Securities and Exchange Commission related to their alleged involvement in misstating online advertising by approximately $1 billion.

Quote:

The allegations involve a series of online advertising transactions beginning in 2000 — a time when AOL was under increasing pressure to reach revenue targets to justify its merger with Time Warner — that eventually led to several earnings restatements. The lawsuits were filed Monday in United States District Court in Lower Manhattan.

The actions by the accused had the effect of conveying to investors and Wall Street analysts that AOL Time Warner was a "healthier, stronger company than it really was," Scott W. Friestad, an associate director in the S.E.C.’s division of enforcement, said in an interview. "The conduct occurred at a time when the Internet bubble was deflating."

Source: New York Times