AOL Hit with Insider-Trading Lawsuit

Two law firms sued America Online Inc. on behalf of shareholders, accusing executives of the world’s No. 1 online service, including Chairman Steve Case, of insider trading. The lawsuit alleges that America Online officers, directors and outside accountants violated federal securities laws. They said the 18 defendants sold shares in the company at a profit before October, when the company announced losses and a big charge for changes in its accounting practices. The lawsuit was filed in U.S. District Court in Alexandria, Va., by New York-based law firm Milberg Weiss and a Wilmington, Del.-based firm, Morris & Morris, on behalf of purchasers of America Online stock from Aug. 10, 1995, to Oct. 29, 1996. Dulles, Va.-based AOL denied the allegations.