Mountain View, Calif. – Google (NASD: GOOG) said it has put aside $500
million to cover potential penalties leveled by the Justice Department over an
unknown investigation into its advertising services. The company revised its
reported net income for the previous quarter downward by 22% to account for the
move.
Discovered in the company’s first quarter earnings report to the SEC,
Google said the $500 million was put in reserve as “a potential resolution
of an investigation by the United States Department of Justice into the use of
Google advertising by certain advertisers.”
The company added that, “Although
we cannot predict the ultimate outcome of this matter, we believe it will not
have a material adverse effect on our business, consolidated financial
position, results of operations, or cash flows.”
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(N.Y. Times)
