America Online 2010 Annual Report Download - page 34

Table of Contents
The Court has dismissed without prejudice the named Plaintiff (Salvadore Ramkisoon) and all but the California False Advertising Law and California
Unfair Competition Law claims, under which the unnamed plaintiffs seek only declaratory and injunctive relief regarding AOL's search query retention
practices. No claims for monetary relief remain in the case. On February 11, 2011, the parties filed briefs in response to the Court's order to address the issue
of whether the Court lacks jurisdiction over the subject matter of the remaining claims.
In addition to the matter listed above, we are a party to a variety of legal proceedings that arise in the normal course of our business. While the results of
such normal course legal proceedings cannot be predicted with certainty, management believes that, based on current knowledge, the final outcome of the
current pending matters will not have a material adverse effect on our business, financial position, results of operations or cash flows. Regardless of the
outcome, legal proceedings can have an adverse effect on the Company because of defense costs, diversion of management resources and other factors. See
"Item 1A—Risk Factors—Risks Relating to Our Business—If we cannot continue to enforce and protect our intellectual property rights, our business could be
adversely affected" and "Item 1A—Risk Factors—Risks Relating to Our Business—We have been, and may in the future be, subject to claims of intellectual
property infringement or tort law violations that could adversely affect our business" included elsewhere in this Annual Report.
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