CalSTRS Wins Victory in Suit Against Homestore.com

June 30, 2005 (PLANSPONSOR.com) - The California State Teachers' Retirement System (CalSTRS) and PricewaterhouseCoopers have agreed on a preliminary settlement of $17.5 million to the Homestore.com class action suit filed by CalSTRS in 2002.
By PS

The suit against Homestore.com, several of its officers, and PricewaterhouseCoopers alleges that the defendants falsified financial statements and engaged in accounting irregularities to meet Wall Street expectations, according to a CalSTRS news release.  

Homestore.com is an Internet real estate company and the class covers all persons who acquired the company’s common stock from January 1, 2000 through December 21, 2001, the two years for which Pricewaterhouse Coopers was accused of violating its professional responsibilities in its audits of the company.

Previously, in August, 2003, Homestore.com reached a settlement to reform its corporate policies, pay $13 million in cash to the class and turn over 20 million shares of stock, which was   valued at about $4 a share at the time, said the news release (See  Homestore Settles CalSTRS-led Suit ).   Previous settlements were also reached by all but two of the company officers named in the lawsuit.

Pricewaterhouse Coopers did not admit to any wrongdoing by agreeing to the settlement.

-Rebecca Moore

«