NEW YORK, Aug. 19, 2002 (PRIMEZONE) -- The law firm of Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") announces that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of AOL Time Warner, Inc. ("AOL Time Warner" or the "Company") (NYSE:AOL) between April 18, 2001 and April 24, 2002, inclusive (the "Class Period") against defendants AOL Time Warner and certain of its officers.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between April 18, 2001 and April 24, 2002, thereby artificially inflating the price of AOL Time Warner securities. As alleged in the complaint, defendants issued numerous materially false and misleading statements concerning the Company, the synergies derived from the merger of America Online Inc. and Time Warner, Inc. (the "Merger") and the Company's prospects and earnings projections. The complaint alleges that these statements were materially false and misleading because they failed to disclose: (i) that the Merger was not generating the synergies as represented by defendants; (ii) that the Company was experiencing declining advertising revenues; and (iii) that the Company had failed to properly write down the value of more than $50 billion of goodwill, thereby artificially inflating its reported financial results and rendering its published financial statements materially false and misleading and in violation of Generally Accepted Accounting Principles.
On April 24, 2002, the last day of the Class Period, AOL Time Warner issued a press release announcing its financial results for the first quarter of 2002, and revealed that it would be taking a one-time, non-cash charge that reduced the carrying value of the Company's goodwill by approximately $54 billion. Following this announcement, AOL Time Warner stock closed at $19.30 per share, a decline of more than 66% from a Class Period high of $56.60 per share. During the Class Period, prior to the disclosure of the true facts about the Company, AOL Time Warner insiders sold their personal holdings of AOL Time Warner common stock to the unsuspecting public for proceeds in excess of $250 million.
If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than September 16, 2002, move the Court to serve as a lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whhf.com) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whhf.com
More information on this and other class actions can be found on the Class Action newsline at www.primezone.com/ca