CalSTRS Leads Suit Against Homestore.com

The U.S. District Court in Los Angeles named California State Teachers’ Retirement System lead plaintiff in nearly 20 consolidated lawsuits against Westlake Village-based Homestore.com and several former executives.

CalSTRS, the nation’s third-largest public pension fund, said it lost an estimated $9 million on more than 431,000 Homestore shares from May 4, 2000, to Dec. 21, 2001. The stock collapsed after the online home-listings company warned that its results would fall short of expectations. The market value of the company has fallen from $4 billion in July to about $297.2 million today.

The suits allege Homestore falsified financial statements and engaged in accounting irregularities.

As lead plaintiff, CalSTRS would receive no payment beyond the prorated share of any recovery given to all members in the lawsuit, as well as reimbursement for court-approved expenses.

Also named in the lawsuits are Stuart H. Wolff, Homestore’s former chief executive who resigned Jan. 7; Peter B. Tafeen, former chief operations officer, and Joseph J. Shew, former chief financial officer.

Homestore shares rose 42 cents to $2.53 on Nasdaq.