AOL, Inc. (NYSE:AOL) Investor Files Class Action Lawsuit Against AOL, Inc. In Connection With AOL’S Sale Of A Portion Of Its Patent Portfolio
May 04, 2012 (Shareholders Foundation) -- An investor in NYSE:AOL shares filed a lawsuit in the U.S. District Court for the Southern District of New York against AOL, Inc in connection with the recently announced sale of a portion of Aol’s patent portfolio for more than $1 billion.
The plaintiff alleges on behalf of those who sold shares of AOL, Inc. (NYSE:AOL) stock between August 11, 2011, and April 9, 2012, that AOL, Inc and its Chairman and CEO, and Chief Financial Officer misled investors about its true financial condition in the run-up to the April 9 announcement that AOL, Inc. has entered into an agreement to sell over 800 of its patents and their related patent applications to Microsoft Corporation (NASDAQ: MSFT) and to grant Microsoft a non-exclusive license to its retained patent portfolio for aggregate proceeds of $1.056 billion in cash.
AOL, Inc. reported that its annual Revenue decreased from $4.01billion in 2008 to $2.11billion in 2011. However, it reported that its Net Loss of $1.52billion in 2008 turned into a Net Income of $13.10million in 2011.
The plaintiff alleges that AOL, Inc. purchased millions of its own shares at artificially depressed prices prior to the April 9 announcement.
Shares of AOL, Inc. (NYSE:AOL) jumped from $18.42 per share on April 5, 2012 to $26.40 per share on April 9, 2012.
NYSE:AOL shares closed on May 4, 2012 at $24.25 per share.