NEW YORK, July 31, 2002 (PRIMEZONE) -- Please take notice that the law firm of Kirby McInerney & Squire, LLP has commenced a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all persons: (i) who purchased, converted, exchanged or otherwise acquired the common stock of America Online, Inc. ("AOL") between July 19, 1999 and January 10, 2001; or (ii) all persons who purchased, converted, exchanged or otherwise acquired the common stock of AOL Time Warner (NYSE:AOL) between January 11, 2001 and July 17, 2002. The action seeks to recover losses suffered by such investors.
A copy of the complaint is available from the Court or from Kirby McInerney & Squire. Please visit our website, which offers summary and detailed information concerning the case at www.kmslaw.com/new_cases/aol/aol.htm, or contact us by phone at (888) 529-4787 or by email at obraun@kmslaw.com.
The complaint asserts claims for violations of Section 10(b) and 20(a) of the Securities and Exchange Act of 1934 against AOL Time Warner, Ernst & Young, LLP (AOL Time Warner's auditor), and several AOL and AOL Time Warner senior executives (including the Chief Financial Officers for AOL and AOL Time Warner).
The alleged violations, according to the complaint, stem from materially false and misleading statements made by the defendants between July 19,1999 and July 17, 2002 (the "Class Period") that, as detailed below: (i) materially misrepresented and inflated the revenues reported by AOL from its online advertising operations during the class period; and (ii) thereby caused AOL and AOL Time Warner stock to trade at artificially-inflated prices during that time. The complaint alleges that, during the class period, defendants misrepresented to the public: (i) the true nature and amount of revenues derived from online advertising (which defendants overstated in contravention of Generally Accepted Accounting Principles); and (ii) the synergies from, and financial effects of, the merger with Time Warner. As disclosed by the Washington Post on July 18, 2002, and as detailed in the complaint, defendants inflated AOL's publicly-reported on-line advertising revenues through a variety of accounting mechanisms that transformed other transactions (such as legal settlements, barter transactions, one-time penalty charges, and revenues in fact destined for other companies) into purported on-line advertising revenue earned by AOL. Ernst & Young, as the complaint alleges, certified these financial results as accurate, despite their alleged violations of GAAP. According to the complaint, the false and inflated advertising revenues reported by the defendants, as well as the defendants' misleadingly positive statements concerning the financial effects of the AOL Time Warner merger, had the effect of artificially inflating the share price of AOL and AOL Time Warner. The suit seeks to recover losses suffered by investors who purchased AOL Time Warner shares during the class period at such inflated prices and who were damaged thereby.
Plaintiffs are represented by Kirby McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at www.kmslaw.com.
If you are a member of the class described above, you may, no later than September 16, 2002, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Ira M. Press, Esq. Ori Braun KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: obraun@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca