CalSTRS Wins Victory in Suit Against Homestore.com
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.
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