AOL Shares Fall Amid Report of SEC Probe
Posted on: Wednesday, 12 March 2003, 06:00 CST
AOL Shares Fall Amid Report of SEC Probe
Source: Associated Press Tech News
Shares of AOL Time Warner Inc. fell 3.8 percent in trading Wednesday following a published report suggesting the government's investigation into accounting practices at America Online unit was widening.
In an article Wednesday, The Washington Post article said regulators were looking into whether the company was "aiding and abetting" schemes by other companies to artificially inflate reported revenue.
Securities and Exchange Commission investigators will investigate whether AOL and other companies exchanged cash through sham transactions to inflate their revenue reports, and whether former executives David M. Colburn and Eric Keller were involved, the Post said, quoting unidentified sources. Attorneys for Colburn and Keller declined to comment, the report said.
An SEC spokeswoman said the agency had no comment on the article. An AOL Time Warner spokeswoman also had no comment other than to say the company is cooperating with the government.
In trading on the New York Stock Exchange, shares of AOL Time Warner dipped 42 cents to close Wednesday at $10.69.
The events under investigation allegedly occurred before and after AOL merged with Time Warner Inc. in January 2001. AOL Time Warner has said it hopes to avoid criminal charges by cooperating with federal investigators.
The company has reported $190 million in accounting discrepancies and turned over thousands of documents to investigators. The company is being investigated by the SEC, the FBI and the U.S. attorney's office for the Eastern District of Virginia.
----
More news from the world's of science, space, and technology from RedNova
Copyright © 2003 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.
Related Articles
- Ecopetrol Will Continue to Assume the Administrative and Custodial Costs Associated With its Shares on the Colombian Stock Market
- Delphax Technologies Files Form 15 to De-Register Shares With SEC
- Biopure Comments on Wall Street Journal Articles
- AOL, Warner Bros. To Offer Old TV Shows Over Internet
- AOL Pictures Introduces Free Photo Sharing Website
- Muscular dystrophy and cancer-associated muscle wasting share dystrophin dysfunction
- AOL, Warner to Bring Old TV Shows Online
- AOL, Warner Bros to Launch TV Service
- Gators Secure Share of SEC East Title
- Shuttle Investigator Comments on Foam
 |
 |
User Comments (0)
RSS Feeds