The California Public Employees’ Retirement System(CalPERS)has recovered US$117.7 million in a settlement of a securities lawsuit against Time Warner.
“This recovery is very favorable to the beneficiaries of the pension fund and is approximately 17 times more than we would have recovered had CalPERS remained in the class action suit,” says the fund’s general counsel, Peter Mixon.
The lawsuit alleged that the firm’s reported advertising revenue and income were overstated through the use of sham transactions and improper accounting practices before and after the merger with America Online.
There were federal investigations and the combined company later restated revenues on three occasions for a total of more than US$1 billion.
Last month, another large California pension fund, CalSTRS, settled its suit against Time Warner. To read that story, click here.
To comment on this story email craig.sebastiano@rci.rogers.com.