Time Warner Inc.'s America Online Inc. unit is settling with the Department of Justice and the Securities and Exchange Commission the long-running investigation into its accounting practices.
A deal with DOJ and a proposed one with the SEC calls for the company to put up $510 million for penalties and reimbursements to investors.
AOL will be charged criminally, but the government will hold off on prosecution for two years, withdrawing the complaint if AOL fulfills other terms of the deal.
The parent company, Time Warner, will not be charged. A signed-and-sealed deal with DOJ calls for Time Warner to pay a penalty of $60 million and establish a $150 million fund to settle any related shareholder litigation.
A proposed deal with the SEC calls for a $300 million penalty. AOL must retain an independent monitor to review the effectiveness of AOL's internal controls.