February 15, 2002
Law Firm Expands Shareholder Lawsuit Against Homestore To Include 2000
Inman News Features
One of the dozen or so law firms that previously filed class-action shareholder lawsuits against Homestore.com and certain former officers and directors of the company this morning said it is enlarging the class of shareholders that can be covered by the lawsuit.
The law firm making the announcement was Milberg Weiss Bershad Hynes & Lerach LLP in San Diego. Other plaintiffs? representatives may follow suit in enlarging class periods to include people who purchased Homestore stock in certain months during 2000 in addition to 2001.
The enlarged legal actions come in the wake of Homestore?s announcement yesterday that it will restate its financial results for the year ended Dec. 31, 2000, in addition to restating its quarterly earnings for the first nine months of 2001. The restatements are a result of an inquiry being conducted by the audit committee of the company's board of directors into certain of the company's accounting practices. New numbers are expected to be announced in March.
Seven employees resigned or were fired in connection with the internal audit, according to the company.
The complaints allege that the defendants made false and misleading statements that misrepresented the company?s business and financial condition and caused its stock price to increase before those individuals sold their shares, then decrease when the company announced its revenues for certain prior periods had been overstated due to improper accounting for advertising revenues.
Other plaintiffs representatives include Bernstein Liebhard & Lifshitz, Wechsler Harwood Halebian & Feffer, Faruqu & Faruqu and Abbey Gardy in New York; Schiffrin & Barroway in Bala Cynwyd, Pa.; Cauley Geller Bowman & Coates in Little Rock, Ark.; Berger & Montague in Philadelphia, Pa.; Weiss & Yourman, The Neiman Law Firm and Klein & Solomon in Los Angeles; and Levy and Levy in Stamford, Conn.
Copyright: Inman News Service
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