Bertelsmann to Pay Two Former Execs $192 Million

German media giant Bertelsmann has agreed to pay $192 million to settle a lawsuit by two former executives who said they had helped form a joint venture between the company and America Online, attorneys said Wednesday.

The settlement was less than the $260.8-million award to Jan Buettner and Andreas von Blottnitz that a Santa Barbara County judge had confirmed earlier this year.

The men claimed in a 2001 lawsuit that they had been promised an equity stake in the joint venture in 1995 that established AOL Europe. Three years ago, Bertelsmann decided to sell a 50% share of the entity to AOL Time Warner, now known as Time Warner Inc., for $6.7 billion.

The lawsuit agreement was reached Saturday to avoid legal maneuvering over a possible appeal, said attorney Anthony Murray, who represents Bertelsmann.

“This represents a big reduction from the original judgment,” he said. “We are delighted with the settlement.”

Attorney Bill Price, who represents the plaintiffs, said the settlement was a safe compromise. “Both Mr. Von Blottnitz and Mr. Buettner are satisfied with the amount.”

In December, a jury found that Bertelsmann breached oral and written contracts with Buettner and Von Blottnitz, who live in Santa Barbara County.

The plaintiffs had initially sought as much as $5 billion in damages but later reduced that to about $3 billion.