SEC Fines Time Warner $300M for Overstating AOL Revenue

Media giant Time Warner Inc. (TWX) will pay a $300-million fine to settle charges that it overstated online advertising revenue and the number of its Internet subscribers, the Securities and Exchange Commission (search) said Monday.

As part of the agreement, Time Warner will neither admit nor deny the SEC's allegations.

The SEC said the company will restate financial results by reducing its reported online advertising revenues by roughly $500 million for the fourth quarter of 2000 through 2002, in addition to the $190 million it has already restated.

The prior statements will also be changed to include the consolidation of AOL Europe in 2000 and 2001.

Together with a separate settlement with the Department of Justice (search) announced last year, the agreement with the SEC ends a difficult period for the company, which has worked to right itself in the wake of its ill-fated merger with AOL, announced at the peak of the Internet bubble in 2000.

Time Warner Chief Financial Officer Wayne Pace, Controller James Barge and Deputy Controller Pascal Desroches also settled SEC accusations that they caused the reporting violations.

Reuters and the Associated Press contributed to this report.