Tuesday, September 27, 2005

Homestore Looks To Limit Legal Costs

Westlake Village-based HomeStore this morning said that it has reached a settlement with former Chairman and CEO Stuart Wolff to limit the company's exposure to legal defense costs. The company said that it has agreed with Wolff to limit attorney's fees and other defense costs to a maximum of $11.0M. In exchange, the company said that it will not seek replayment of those funds. Wolff and other former officers of the company had been seeking advancement of legal fees and expenses as a result of the company's restatements and accounting issues. Wolff is the target of a federal criminal indictment, an SEC lawsuit, and a class action lawsuit. Homestore is a provider of marketing services to real estate agents and operates the Realtor.com web site and other real estate related web sites.