Shares in AOL Time Warner slumped today following news that the media group is to be investigated by the US securites and exchange commission.
AOL’s chief executive, Richard Parsons denies the accusations but yesterday admitted that the SEC has launched a “fact finding inquiry” into the company’s accounts.
This development follows the resignation last week of Robert Pittman, one of the chief architects of AOL’s internet business (see COO Quits AOL Time Warner), which has struggled to attract revenue during the advertising recession.