As the world's largest media company faces probes by the Securities and Exchange Commission and the Department of Justice, AOL Time Warner shareholder Kenneth McClure filed the suit in federal court in Texarkana, Texas, seeking an unspecified amount in damages for alleged securities fraud.
The suit argues that
The lawsuit seeks to be a class action on behalf of holders of AOL common stock from July 19, 1999, and those whose stock was converted to AOL Time Warner between Jan. 11, 2001, to July 17 of this year.
AOL Time Warner Chairman Steve Case, Chief Financial Officer Wayne Pace and former CFO Michael Kelly, currently chief operating officer of the America Online division, are named in the suit.
A spokeswoman for AOL Time Warner said, "We haven't seen the suit yet, but as we have said before, all of the company's accounting has been appropriate and in accordance with generally accepted accounting principles, and we have provided our investors with all appropriate material information about our business."