An AOL Time Warner shareholder has filed a lawsuit against the media giant, claiming that it artificially inflated online advertising revenues.
The suit has been filed by Kenneth McClure, a holder of 10,680 shares in the company.
The lawsuit seeks to represent holders of AOL shares since 19 July 1999 and those whose stock was converted to AOL Time Warner between 11 January 2001 and 17 July 2002.
McClure is claiming unspecified damages for the alleged fraud and crash in value of AOL Time Warner shares, which have fallen about 70 per cent this year.
The suit, filed in a federal court in Texas, claims that advertising revenue was a vital factor in investors' decisions to purchase and hold AOL Time Warner stock.
But AOL Time Warner said its accounting procedures have been audited and are in line with accepted practices.
"We haven't seen the lawsuit but all company accounting has been appropriate and in accordance with generally accepted accounting principles," a spokeswoman for the company said.
"We have provided our investors with all appropriate material information about our business," she added.
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