Investigations were made into several transactions by AOL, which has been charged with criminal securities fraud in connection with its online advertising sales but will probably avoid prosecution as part of the payout agreements agreed with the Department of Justice and Securities & Exchange Commission.
The Department of Justice looked into claims that several AOL executives worked with PurchasePro, a smaller internet company, to exaggerate AOL advertising revenues.
As part of the $510m settlement, Time Warner will pay $210m to the Department of Justice to see allegations dropped that AOL handed out payments to companies to buy ads on its site as part of a deception to inflate revenues.
The company will also pay $300m to settle an investigation by the Securities & Exchange Commission into its handling of certain AOL transactions, including a £400m payout from German media firm Bertelsmann.
In an official statement, Time Warner said: "The Department of Justice will file a criminal complaint against AOL for the conduct of certain employees in connection with securities fraud committed by PurchasePro.com, but the Department of Justice will defer the prosecution of AOL.
"After two years, provided the company fulfills its obligations under the agreement, the Department of Justice will dismiss the criminal complaint filed against AOL."
The statement said that, while the company's chief financial officer, controller and deputy controller will "agree to the entry of an administrative order that they cease and desist from any violations of certain reporting provisions of the securities laws", they would continue to work for the company in their current positions.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
