NEW YORK, Jan. 25, 2002 (PRIMEZONE) -- A securities class action lawsuit was filed on January 3, 2002 on behalf of all persons who acquired Homestore.com, Inc. (Nasdaq:HOMS) ("Homestore" or the "Company") common stock between July 20, 2000 and December 21, 2001 (the "Class Period"). A copy of the complaint is available from the Court or from Abbey Gardy, LLP. Please contact us by phone at (800) 889-3701 or by email at Nkaboolian@abbeygardy.com or Jhaas@abbeygardy.com.
The Complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges, among other things, that defendants issued a series of materially false and misleading statements regarding the Company's financial condition. On December 21, 2001, Homestore disclosed that the board of directors was conducting an inquiry into the Company's accounting practices. On January 2, 2002, Homestore announced that based on the inquiry to date, the Company has overstated its on-line advertising revenues in the first three quarters of 2001 by between $54 million and $95 million in connection with certain advertising transactions that should have been accounted for as barter transactions. The Company also announced that the Company's 2000 fiscal results might also be restated.
The Complaint also alleges that defendants knew that Homestore's revenues were inflated and sold thousands of shares of their holdings while in possession of that adverse information.
The Complaint further alleges that defendants' misrepresentations caused the price of Homestore common stock to be artificially inflated throughout the Class Period.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired securities during the Class Period. If you purchased or otherwise acquired securities during the Class Period, and either lost money on the transactions or still hold the securities, you may wish to join in the action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than February 25, 2002.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Abbey Gardy, LLP, or other counsel of your choice, to serve as your counsel in this action.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian or Jennifer Haas of Abbey Gardy, LLP at (800) 889-3701 or email NKaboolian@abbeygardy.com or JHaas@abbeygardy.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca