The
state this past week settled its investment fraud
lawsuit against Time Warner and its subsidiary
AOL, bringing in almost $50 million for state coffers.
The
state filed suit against the media and entertainment
companies in 2004, alleging the firms had misrepresented
advertising revenue and AOL subscribers to falsely
boost profits -- and stock prices. Alaska originally
was part of a nationwide, class-action lawsuit against
AOL Time Warner in federal court, but opted out and
went to court on its own.
Working
with an outside law firm that specializes in such
cases, the state settled for $50 million on its original
$70 million claim --a good day's work in such cases.
And in more good news, the state Department of Law
negotiated to pay the outside law firm just 8.5 percent
of the settlement, leaving more than $45 million
for the state after all expenses. |
