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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: jack rand who wrote (10244)	6/12/1998 12:23:00 AM
From: Mick Mørmøny	Read Replies (1) \| Respond to of 13594

State-of-the-Art Accounting Thursday June 11, 3:00 pm Eastern Time Company Press Release America Online, Inc. Reaches Preliminary Agreement In Class Action Lawsuit DULLES, Va.--(BUSINESS WIRE)--June 11, 1998--America Online, Inc. (NYSE: AOL - news) said today it has reached a preliminary agreement to settle Orman v. America Online, Inc., a class action lawsuit filed in U.S. District Court for the Eastern District of Virginia regarding the Company's accounting of certain marketing costs in 1995-96. The settlement is subject to final documentation and Court approval. As part of the agreement, the Company will make up to $35 million in payments, a substantial portion of which it expects to be covered by insurance. The suit focused on the Company's capitalization of certain marketing costs and on related public disclosures. The Company discontinued this accounting in October 1996, in connection with its switch to unlimited use pricing, prior to the filing of the lawsuit. ''We're pleased to put behind us this suit regarding events in 1995 and 1996. We believe a lengthy and distracting litigation process is not in the best interests of AOL's members, the Company or its shareholders,'' said George Vradenburg, senior vice president and General Counsel of America Online. America Online, Inc., based in Dulles, Va., is the world's leader in branded interactive services and content. America Online operates two worldwide Internet online services: AOL Interactive Services, with more than 12 million members; and CompuServe, with approximately 2 million members. America Online also operates AOL Studios, the world's leading creator of original interactive content. Other branded Internet services operated by America Online include AOL.COM, the world's most accessed Web site from home; AOL NetFind, AOL's comprehensive guide to the Internet; AOL Instant Messenger, an instant messaging tool available on both AOL and the Internet; and ICQ, an instant communications and chat technology on the Internet. Contact: America Online Inc. Tricia Primrose, 703/265-1746