by Mike Masnick
Mon, May 19th 2008 6:52pm
It's somewhat amazing that this case is still going on, but AOL's sneaky ad deals to boost its own revenue are still the target of lawsuits. Back in 2006, we noted that federal prosecutors had decided that it wasn't worth prosecuting the executives involved. However, it appears that the SEC feels differently. It's now sued eight former AOL execs for taking part in the scam -- though, four of them have already settled. If you don't recall, AOL had this nice little trick where it would "swap" ads with other sites, where no money changed hands, but both sides would record revenue. That let them boost revenue (up to a billion dollars for AOL) without any actual revenue coming in. It's a nice little trick... and it's also illegal. Though, it all took place in the 2000/2001 timeframe, so it's not clear why it took the SEC seven years to do something about it.
If you liked this post, you may also be interested in...
- LA School District's iPad Farce Reaches Nadir As Officials Demand Refunds From Apple, Answer Questions From The SEC
- SEC Boss Can't Keep Her Story Straight On Whether Or Not SEC Snoops Through Your Emails Without A Warrant
- Good News: Internet Ad Industry Realizes It Needs To Embrace HTTPS
- Court Says By Agreeing To AOL's Terms Of Service, You've 'Consented' To Search By Law Enforcement
- Huffington Post And The View From Bogustan: Standing Behind Blatantly False Claims Isn't Journalism