As reported earlier in JURIST's Paper Chase, Time Warner [corporate website] has agreed to a large settlement with investors. In a press release, Time Warner announced that it had agreed to a $2.4 billion settlement of a securities lawsuit and will set aside an additional $600 million for further litigation costs. The lawsuit was brought by investors who held stock in the company at the time of its disastrous merger with AOL [Wikipedia entry]. BusinessWeek has more.
Bloomberg is reporting that the US Justice Department [official website] may push for a large settlement with KPMG [corporate website] instead of carrying on with criminal indictments against the company. The report cites unnamed sources who say the government would prefer to fine the auditing firm upwards of $500 million for its role in creating illegal tax shelters [JURIST report] and lying to the IRS [official website].
Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible, ad-free format.