Industry News

Judge approves $93 million Homestore settlement

California teachers pension fund chief 'delighted' with outcome

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A federal court judge has given final approval to a $93 million settlement in a class-action shareholder lawsuit against Homestore, the public company that operates the Web site for the National Association of Realtors, among other businesses. The settlement was announced today by the California State Teachers' Retirement System, the lead plaintiff in the lawsuit. The lawsuit accused Homestore of falsifying financial statements and engaging in accounting irregularities in 2000 and 2001, the pension fund said. U.S. District Court Judge Marsha J. Pechman, in issuing her ruling March 16, also extended the deadline for class members to submit claim forms until May 31, 2004. The settlement was announced in August 2003. Pechman's ruling finalizes that settlement, which called for Homestore to reform its corporate policies, pay $13 million in cash to the class and turn over 20 million shares of stock, CalSTRS said. The stock closed today at $3.95 a share. Homestore tran...