Time Warner Inc. has agreed to pay $300 million as part of a settlement with the US Securities and Exchange Commission ( SEC ) over charges that the company materially overstated on-line advertising revenue and the number of its internet subscribers.
Time Warner (formerly known as AOL Time Warner) had also been charged with aiding and abetting three other securities frauds and violating a SEC cease-and-desist order issued against America Online in 2000.The company has not admitted or denied the allegations, but will pay a penalty of $300 million into a Fair Fund, which, as authorised under the Sarbanes-Oxley Act, is used to compensate investors hit by corporate financial wrongdoing.The media giant has also agreed to restate its historical financial results for the fourth quarter of 2000 through 2002 and to properly reflect the consolidation of AOL Europe in the company's 2000 and 2001 financial statements.In addition the company will engage an independent examiner to determine whether the company's historical accounting for certain transactions was in conformity with generally accepted accounting principles. The examiner is due to report to the securities regulator within 180 days.According to Time Warner, the company has now restated the required financial results, but depending on the independent examiner's conclusions, a further restatement might be necessary.Finally, the settlement requires the company to comply with the Commission's earlier cease-and-desist order against AOL; enjoins the company from violating anti-fraud, reporting, books-and-records, and internal control provisions of the federal securities laws; and enjoins the company from aiding and abetting securities fraud.In a separate administrative action, Time Warner CFO Wayne H Pace, Controller James W Barge, and Deputy Controller Pascal Desroches have been charged with causing company reporting violations based on their roles in accounting for $400 million paid to the company by Bertelsmann AG in two sets of transactions."The actions against Pace, Barge, and Desroches demonstrate that the Commission will hold responsible executives and accountants who fail to take meaningful action when faced with significant evidence that the accounting is wrong," said James Coffman, Assistant Director of the Commission's Division of Enforcement."As our investigation continues, we will be turning our attention to those primarily responsible for the company's fraud and improper reporting," he added.A cease and desist order has been put in place against the three men, prohibiting them from any future violations of reporting provisions of the securities laws, but no suspension, bar or penalties have been imposed against them.They continue to work for the company, according to Time Warner.
Most contracts for construction works will include an extension of time mechanism, whereby the contractor will be entitled to an extension of time to the agreed completion date – the date by which the works must be completed – in circumstances where there are delays to a project which are not the contractor’s fault or for which the employer has taken the risk.
UK employers faced with industrial action need to understand the steps that a trade union must take before they can lawfully make a call for industrial action and the timing of those steps.
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