Acting as a bunch of Thugs and Gangsters, AOL has finally been brought down on abuse of cancellations. 48 States brought up the suit, and a measly 3 mil was the settlement. AOL killed dial up service for customers, but then would not allow them to cancel even though they had no access.

This isn't the first time AOL has gotten in trouble.

In 2005, AOL paid $1.25 million in penalties and costs to resolve a similar complaint in New York. In 2003, the company agreed to improve the way it dealt with customer cancellation requests as part of a Federal Trade Commission inquiry into allegations about unfair billing practices.

In a separate development, investors hurt by accounting shenanigans that inflated AOL's advertising revenue from 1998 to 2002 will begin to receive payments from a $2.65 billion class action settlement later this month.

This looks like a tail spin for the once giant. Customers are leaving due to broadband, negative publicity, and other free services on the internet.

AOL ended March with 12 million U.S. subscribers, down from 21 million less than two years ago.

AOL to pay $3M, reform cancel policies - Yahoo! News