Time Warner and AOL agreed to pay $23 million to settle a lawsuit claiming the companies misled investors and caused four public investment funds in the state of Pennsylvania to lose $100 million. The
suit focused on statements made by the two companies following their $106 billion merger in January 2001, at that time making the combined company the largest media company in the world. It was filed
in a Pennsylvania state court in Philadelphia in 2004 on behalf of the Public School Employees Retirement System, the State Employees Retirement System, the Tobacco Settlement Investment Board and the
State Workers Insurance Fund. Accounting firm Ernst & Young, investment banks Morgan Stanley, Citigroup Global Markets Inc., Banc of America Securities and J.P. Morgan Chase & Co. were included in the
suit--to what extent was unclear in the story.
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