CalPERS reached a $103.5 million settlement in its lawsuit against Time Warner Inc., confirmed Clark McKinley, spokesman for the $229 billion system. The lawsuit, filed in 2003 by the California Public Employees Retirement System, Sacramento, claimed Time Warners reports of AOL LLCs advertising revenue and income were overstated before the two companies merged in 2000. CalPERS had been part of a class-action suit against Time Warner but filed an individual suit. Peter Mixon, CalPERS general counsel, said in a news release that CalPERS settlement will give the system about 17 times more money than it would have received if it had remained in the class action. The settlement does not include accounting firm Ernst & Young, which is still a defendant. Mr. McKinley declined to say how much the fund is seeking to recover from Ernst & Young. CalPERS owns 18.9 million shares of Time Warner stock valued at $366.9 million.
A call to a Time Warner spokesman Keith Cocozza was not returned by press time.