Industry News

Homestore forced to pay legal fees for former exec

Court rules in Tafeen case

The Court of Chancery of the State of Delaware has ruled that Homestore must pay former company executive Peter Tafeen all reasonable attorney's fees and costs in connection with the Securities and Exchange Commission and U.S. Justice Department investigations and civil lawsuits that have been filed against Tafeen for his purported role in a scheme to inflate Homstore's revenues. The Court said Tafeen also is entitled to payment of his attorney's fees for bringing the lawsuit against Homestore. Homestore in a statement said it is analyzing the ruling and considering its options, including a possible appeal of the decision. The amount of legal fees Homestore will be required to pay is undetermined at this time, but the company speculated in a previous investor conference call that it could cost as much as $3 million, according to Homestore spokesperson Erin Campbell. Tafeen, who was a marketing and business development executive at Homestore, left the company in the fall of 2001, whe...