Report: AOL’s Case May Face Ouster
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New York (AP)_ Several directors of AOL Time Warner are seeking to oust the company’s chairman, Stephen M. Case and he is fighting their offensive, according to an article posted on the New York Times Web site Monday night.
The article reported that three people close to the company said the directors may seek Mr. Case’s removal when the board meets on Thursday and that he will likely have enough support to retain his position. He only needs the support of three of the company’s 14 board members to remain chairman.
The company has acknowledged that several institutional shareholders are angry over Cases’s role in AOL’s takeover of Time Warner because the shares of the combined companies have slid 70 percent since the deal closed, but insists that there is no reason to think Case is leaving, the article said.
The Securities and Exchange Commission and Justice Department are investigating whether AOL inflated its earnings before the acquisition.