Case, Turner face insider trading charges

15 Apr 2003

AOL Time Warner boss Steve Case and a number of his senior executives, including vice-chair Ted Turner, are facing charges of insider trading.

It’s reported to involve a figure of upwards of US$1.5bn.

Two investors are making the claim that the men engaged in ‘tricks, contrivances and bogus transactions’ that were used to inflate the share price of the disastrously-merged company.

Amalgamed Bank’s Longview Collective Investment Fund and the University of California, who say they’ve lost US$450m, have filed a suit in the California Superior Court saying AOL overstated earnings by in the region of US$1bn.

They are alleging that Case, Turner and company made a financial killing at the peak share price.

The assets of AOL Time Warner were reduced by a whopping US$99.7bn last year.

The company is already facing US government investigation to restate results for a two-year period, cutting revenue down by US$190m.

By Suzanne Byrne