PricewaterhouseCoopers today agreed to pay $17.5 million to investors under a preliminary settlement to settle a class-action suit related to Homestore.com's accounting practices, according to a CalSTRS news release. PricewaterhouseCoopers did not admit to any wrongdoing, the release said.
The $126.6 billion California State Teachers' Retirement System, Sacramento, filed suit on Nov. 15, 2002, against Homestore.com, key officers and PricewaterhouseCoopers, accusing the parties of cooking the books to meet Wall Street earnings expectations. In August 2003, Homestore.com settled, agreeing to reform corporate policies and pay $13 million in cash and 40 million shares of stock to investors.
Legal action still continues against Stuart H. Wolff, the company's former chairman and CEO, and Peter B. Tafeen, former executive vice president, business development and sales.