Industry News

Homestore will pay up to $11 million for Wolff’s defense

Company has already spent millions for another former officer

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

Homestore, which has already paid out about $4.2 million to support the legal defense of a former executive, has reached an agreement that could drain up to $11 million more to pay the legal costs of another former executive, the company announced today. Stuart Wolff, the company's former chairman and CEO who resigned in 2002 amid an internal investigation, has already incurred about $7.6 million in fees and expenses, Homestore officials said in a statement today. Wolff's legal costs relate to a federal criminal indictment, a Securities and Exchange Commission lawsuit, a shareholder class-action lawsuit, and another action, according to the Homestore announcement. Though past management problems continue to plague Homestore, the public company's financial results have improved this year to achieve profitability. Homestore operates several online home-search sites, including Realtor.com, HomeBuilder.com and RentNet.com. "In the absence of a settlement, the company faced the possib...