BrokerageIndustry News

Realogy quietly exits Homestore scandal

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Editor's note: The series has been corrected and amended in response to requested corrections, clarifying statements and additional information brought forward by lawyers for Realogy and Richard A. Smith. This is the second of a two-part series on a legal settlement resolving the alleged involvement of Realogy Corp.'s predecessor, Cendant, in inflating the revenue of operator Homestore (now Move Inc.). Part 1, "Realogy puts Homestore behind it," detailed the terms of the settlement, and the reasons each side gave for agreeing to end their long court battle. This report examines details of deals between Cendant and Homestore that Homestore investors would later claim were concealed from them. When circular deals that artificially pumped up the revenue of operator Homestore during the dot-com boom unraveled, the crash of the company's stock and subsequent criminal trial of founder and former Chief Executive Officer Stuart Wolff grabbed hea...