America Online

Santa Fe, NM: (May-05-07) The state of New Mexico filed a lawsuit against America Online over lost investments that stemmed from Time Warner being acquired in 2001 by America Online. The suit arose because the State Investment Council, Educational Retirement Board and Public Employees Retirement Association had all invested separately in the two companies before AOL announced it was buying Time Warner, leading to the attorney general's office recording losses in the value of the companies' common stock. The state alleged that AOL stock had traded at inflated values because of misstated financial information. As part of a settlement, AOL agreed to pay nearly $16 million for the state's lost investments. The settlement is said to be about ten times the amount the New Mexico state agencies would have recovered had they remained part of a class action filed in federal court in New York. [KOB NEWS: AOL STOCK]