Freeserve claims to have over 2.2 million users; AOL UK claims to have over 1.5 million users. The statement was contained in a Time Warner AOL press release announcing the company's financial results. Freeserve described the statement as "wild" and "misleading."
A Freeserve spokeswoman is quoted by ZD Net, saying: "We're bigger than them. We've complained to the SEC because this claim could damage or parent companies, who have stock holders in the US."
Freeserve has attacked AOL in the past. It is currently lobbying the UK government over the tax benefits enjoyed by its US rival as a result a loophole in UK legislation.