Updated from 9:19 a.m. EDT
AOL Time Warner
was dropping almost 5% in Wednesday trading after the company confirmed a published report that the Justice Department has joined an investigation into its accounting practices.
The company confirmed the report, which indicated that authorities are working with the
Securities and Exchange Commission
to look into transactions in the company's Internet division. The news was first reported in the
Specifically, the probe is believed to focus
on questions raised by the recent
article detailing what it called questionable revenue booking from advertising contracts.
AOL said it plans to cooperate with the Justice Department probe, but added that it is "not under any subpoena" from the government. AOL also said it believes its accounting was appropriate.
Shares of AOL were dropping 61 cents to $11.79 on the news.