Questions & Answers

1. What is this lawsuit about?
2. What will the class members receive?
3. What do I have to do to participate in the settlement?
4. Am I eligible to participate in the settlement?
5. Who are the attorneys representing the members of the settlement class?
6. How much money will Class Counsel receive?
7. When will the settlement approval hearing occur?
8. How can I object to the terms of the settlement?
9. When will the money be distributed?
10. If there is a beneficial owner and record owner on the claim, whose address should be used?
11. If the beneficial owner is a minor, what information should I supply?
12. What is acceptable confirmation for the purchase or sale of my stock?
13. I cannot locate any confirmation or proof of purchase. What should I do?
14. May I use my tax records as confirmation of owning Homestore stock?
15. Can I sell my Homestore stock before the settlement distribution and still participate in the settlement?
16. What is the status of the lawsuit?
17.  If I previously submitted a claim form with respect to the settlement with Homestore and/or with the individual defendants, Shew, Giesecke, DeSimone, Losh, Kalina and Rosenblatt, and/or with PricewaterhouseCoopers, LLP, and/or with Time Warner Inc., Max Worldwide, Inc., formerly known as L90, Inc., and Peter Tafeen, do I need to submit a new Proof of Claim and Release Form with regard to the settlement with Cendant and Smith?



1. What is this lawsuit about?
This is a securities class action brought on behalf of investors who purchased or otherwise acquired Homestore.com, Inc. (“Homestore”) common stock between January 1, 2000 through and including December 21, 2001 (“class period”).

Plaintiff alleges that Defendants in this matter made false and misleading statements in connection with the company's earnings for fiscal year 2000 and the first three quarters of 2001.


2. What will the class members receive?
The settlement with Homestore has been finalized. To settle this lawsuit, Homestore agreed to pay $13 million in cash and 20 million shares of Homestore common stock. In addition to this, the settlement includes significant corporate governance reforms to be instituted by Homestore. See Section IX of the Notice of Pendency and Proposed Partial Settlement of Class Action relating to the Homestore settlement for further details.

The settlement with Shew, Giesecke, DeSimone, Kalina, Losh and Rosenblatt has been finalized. To settle this lawsuit, Shew, Giesecke, DeSimone, Kalina, Losh and Rosenblatt agreed to settlements totaling $5,956,215.64. See Section IX of the Notice of Pendency and Proposed Partial Settlement of Class Action relating to these settlements for further details.

The settlement with PricewaterhouseCoopers, LLP has been finalized. To settle this lawsuit, PricewaterhouseCoopers, LLP agreed to pay $17.5 million in cash. In addition to this, the settlement includes significant corporate governance reforms to be instituted by Homestore. See Section IX of the Notice of Pendancy and Proposed Partial Settlement of Class Action relating to the settlement with PricewaterhouseCoopers, LLP for further details.

The settlement with Time Warner, L90 and Tafeen has been finalized. To settle this lawsuit, defendants agreed to a settlement totaling $7,965,000. See section IX of the Notice of Pendency and Proposed Partial Settlement of Class Action relating to this settlement for further details.

The proposed settlement with Cendant and Smith creates a fund in the amount of $4,000,000.00 in cash (the “Settlement Fund”) and will include interest that accrues on the fund prior to distribution.  Your recovery from this fund will depend on a number of variables, including the number of shares of Homestore common stock you purchased or acquired during the period January 1, 2000 to December 21, 2001, and the timing of your purchases and any sales.  See Section IX of the Notice of Pendency and Proposed Partial Settlement of Class Action relating to this settlement for further details.


3. What do I have to do to participate in the settlement?
The deadline for submission of the Proof of Claim and Release Form related to the settlement with Homestore has passed.

The deadline for submission of the Proof of Claim and Release Form related to the settlements with Shew, Giesecke, DeSimone, Losh, Kalina and Rosenblatt has passed.

The deadline for submission of the Amended Proof of Claim and Release Form related to the settlement with PricewaterhouseCoopers, LLP has passed.

The deadline for submission of the Proof of Claim and Release Form related to the settlement with Time Warner, L90 and Tafeen has passed.

If you are a Class Member, you may receive the benefit of the settlement with Cendant and Smith if you file a Proof of Claim and Release, postmarked on or before April 2, 2009 to the following address:

Claims Administrator
In re Homestore.com, Inc. Securities Litigation
c/o Rust Consulting
P.O. Box 1670
Faribault, MN 55021-1670

4. Am I eligible to participate in the settlement?
The deadline to participate in the settlement with Homestore has passed.

The deadline to participate in the settlements with Shew, Giesecke, DeSimone, Losh, Kalina and Rosenblatt has passed.

The deadline to participate in the settlement with PricewaterhouseCoopers, LLP has passed.

The deadline to participate in the settlement with Time Warner, L90 and Tafeen has passed.

The proposed settlement with Cendant and Smith applies to all persons and entities, including Cendant, who purchased Homestore.com, Inc. common stock from January 1, 2000 through December 21, 2001.  Cendant is a member of the Class because in October 2000, Cendant sold two subsidiaries, Move.com and Welcome Wagon International, Inc., to Homestore in exchange for approximately 21.5 million shares of Homestore stock with a market value of approximately $750 million at that time and representing approximately 20% of the outstanding shares of Homestore stock.


5. Who are the attorneys representing the members of the settlement class?
The Court has appointed the following attorneys as Class Counsel:

Nancy L. Fineman
COTCHETT, PITRE & MCCARTHY
840 Malcolm Rd., Suite 200
Burlingame, CA 94010

6. How much money will Class Counsel receive?
Per the Court's Order Authorizing Distribution of Settlement Funds to Class Members, dated June 6, 2005, Class Counsel and Co-Counsel shall be paid attorneys fees in the amount of $655,380 in cash and 1,007,461 in stock and partial reimbursement of expenses in the amount of $350,000.

Per the Court's Order Granting Lead Plaintiff's Motion for Final Approval of Class Settlements with Certain Individual Defendants, dated September 16, 2005, Class Counsel and Co-Counsel shall be partially reimbursed from the Settlement Fund in the amount of $195,000 to cover out-of-pocket expenses incurred by Lead Plaintiff's Counsel in prosecuting this Action to date, and for distributions not to exceed a total of $250,000 from the Settlement Fund to cover costs associated with giving notice of these settlements to Class Members, claims administration associated with these settlements, and other related expenses.

Per the Court's Order Approving Plan of Allocation and Distribution; and Award of Attorneys' Fees and Reimbursement of Expenses to Lead Plaintiff's Counsel, entered January 11, 2006, Class Counsel and Co-Counsel shall be paid attorneys' fees in the amount of $1,170,875. Class Counsel and Co-Counsel shall be reimbursed for costs they have advanced to date on behalf of the Class, in the amount of $1,841,484.43.

Per the Court's Order Approving (1) Final Partial Class Settlements with Time Warner, L90 and Tafeen; (2) Plan of Allocation; (3) Award of Attorneys' Fees and Reimbursement of Expenses; (4) Distribution of Claims Administration Funds; and (5) Allowing Plaintiffs to Simultaneously Distribute the Settlement Fund and the SEC Restitutionary Account, entered December 4, 2007, Lead Plaintiff's Counsel shall be paid attorneys' fees in the amount of $836,325. Lead Plaintiff's Counsel shall be reimbursed for costs they have advanced to date on behalf of the Class, in the amount of $89,338.43.

If the Court approves the Cendant and Smith settlement, Lead Plaintiff’s Counsel will apply to the Court for attorneys’ fees, not to exceed 10.5% of the Settlement Fund.  In addition, Lead Plaintiff’s Counsel will seek full reimbursement of out-of-pocket expenses incurred to date in prosecuting this litigation and will seek distribution from the Settlement Fund of costs associated with providing notice of this Settlement, administering claims associated with the Settlement and other related expenses to the extent that those expenses exceed the $350,000.00 which the Stipulation of Settlement and this Court’s order permitted to be used for notice to the Class and administration of the Settlement Fund.  The Court will consider the attorneys’ fees and costs petition separate from its consideration of the fairness, reasonableness and adequacy of the Settlement set forth in the Stipulation.  Therefore, any order relating to attorneys’ fees and costs will not delay the Settlement approval process


7. When will the settlement approval hearing occur?
The Court preliminarily approved the settlement with Homestore on October 8, 2003. A final approval hearing was held on January 16, 2004. The Homestore settlement was approved on March 16, 2004. A distribution hearing related to the Homestore settlement was held on June 6, 2005.

The Court preliminarily approved the settlements with Joseph J. Shew, John M. Giesecke, Jr., John D. DeSimone, Sophia Losh, Jeffrey M. Kalina and David Rosenblatt on April 14, 2005. The settlements with Joseph J. Shew, John M. Giesecke, Jr., John D. DeSimone, Sophia Losh, Jeffrey M. Kalina and David Rosenblatt were approved on September 16, 2005.

The Court preliminarily approved the settlement with PricewaterhouseCoopers, LLP on August 16, 2005. A final approval hearing was held on January 9, 2006. The settlement with PricewaterhouseCoopers, LLP was approved on January 11, 2006. A distribution hearing related to the settlement with PricewaterhouseCoopers, LLP was held on January 9, 2006.

The Court preliminarily approved the settlement with Time Warner, L90 and Tafeen on August 6, 2007. A final approval hearing was held on December 4, 2007. The settlement with Time Warner, L90 and Tafeen was approved on December 4, 2007.

The Court preliminarily approved the settlement with Cendant and Smith on December 11, 2008.  A final approval hearing related to this settlement will occur March 16, 2009.


8. How can I object to the terms of the settlement?
The deadline to object to the Homestore settlement has passed. All objections which were timely filed were considered and heard at the final approval hearing on January 16, 2004.

The deadline to object to the settlements with Shew, Giesecke, DeSimone, Losh, Kalina and Rosenblatt has passed. All objections which were timely filed were considered and heard at the Settlement Hearing on August 29, 2005.

The deadline to object to the settlement with Pricewaterhouse Coopers, LLP has passed. All objections which were timely filed were considered and heard at the Final Approval Hearing on January 9, 2006.

The deadline to object to the settlement with Time Warner, L90 and Tafeen has passed. All objections which were timely filed were considered and heard at the Final Approval Hearing on December 4, 2007.

Any Class Member who objects to any aspect of the settlement, the Plan of allocation, or the application for reimbursement of costs and expenses, may appear and be heard at the Final Approval Hearing.  Any such Person must submit a written notice of objection, received on or before March 3, 2009 as detailed on page 6 of the Notice of Pendency and Proposed Partial Settlement of Class Action.


9. When will the money be distributed?
On June 6, 2005 Judge Lew signed an Order Authorizing Distribution of Settlement Funds to Class Members. As a result, Rust Consulting (the Claims Administrator) dispersed cash awards to authorized claimants on July 11, 2005 and Mellon (the Transfer Agent) mailed stock letters to authorized claimants on August 9, 2005.

With respect to the settlements with Joseph J. Shew, John M. Giesecke, Jr., John D. DeSimone, Sophia Losh, Jeffrey M. Kalina and David Rosenblatt, a date for distribution will be determined after the expiration of the date to file claims, August 23, 2005, after all claims are processed, and upon the date of final affirmance on an appeal of the Judgment, the expiration of the time for a petition for or denial of a writ of certiorari to review the Judgment and, if certiorari is granted, the date of final affirmance of the Judgment following review pursuant to the grant; or (ii) the date of final dismissal of any appeal from the Judgment or the final dismissal of any proceeding on certiorari to review the Judgment; or (iii) if no appeal is filed, the expiration date of the time for filing or noticing of any appeal from the Court's Judgment approving the Stipulation, i.e. thirty (30) days after entry of the Judgment.

On September 25, 2002, the SEC obtained permanent injunctions and other relief against three of the defendants, Giesecke, Shew and DeSimone. The SEC alleged that the defendants caused Homestore to overstate its revenues for the first three quarters of 2001. As part of the SEC settlement, the defendants will pay approximately $4.6 million into a fund that, with Court Approval, will be disbursed to eligible Class Members. For more information on the SEC allegations, please click here. For further updates, please check Current Developments.

On January 11, 2006 Judge Lew signed an Order Approving Plan of Allocation and Distribution; and Award of Attorneys' Fees and Reimbursement of Expenses to Lead Plaintiff's Counsel for the settlement with PricewaterhouseCoopers, LLP. As a result, Rust Consulting (the Claims Administrator) will disperse cash awards to authorized claimants as detailed in the Order Approving Plan of Allocation and Distribution; and Award of Attorneys' Fees and Reimbursement of Expenses to Lead Plaintiff's Counsel.

With respect to the settlement with Time Warner, L90 and Tafeen, the Court allowed Lead Plaintiff's Counsel to wait to simultaneously distribute funds from the Settlement Fund and the Securities and Exchange Commission's fund held on behalf of the Class Members ("SEC restitutionary account"). However, distribution from the SEC restitutionary fund is subject to SEC approval and a transfer of funds from the SEC's account to the escrow account established by Lead Plaintiff's Counsel for the benefit of Class Members.

Distribution for the settlements with the individual defendants, Shew, Giesecke, DeSimone, Kalina, Losh and Rosenblatt, and with PricewaterhouseCoopers, LLP, and with Time Warner Inc., Max Worldwide, Inc., formerly known as L90, Inc., and Peter Tafeen have not yet taken place.  While litigation against Stuart Wolff continues, distribution of the settlement funds for the second, third and fourth partial settlements will be held in an interest bearing account. It is likely that these funds will not be distributed until such time that recovery from all potential sources is complete.

The Court will hold a hearing on March 16, 2009 to decide whether to approve the settlement with Cendant and Smith. If the Court approves the settlement, there may be appeals. It is uncertain whether appeals can be resolved, and resolving them could take a significant amount of time. Additionally, accurately processing the claims by the independent Claims Administrator can also take a significant amount of time. Please be patient. You may also monitor the current developments for updated activity.


10. If there is a beneficial owner and record owner on the claim, whose address should be used?
The address should be for the person or entity that is filing the claim.


11. If the beneficial owner is a minor, what information should I supply?
The claim form should be signed by the minor's guardian. The minor's guardian should supply his or her social security number. The minor's social security number should also be supplied and should be identified as the taxpayer ID for the claim. The minor's guardian should certify the W-9 form.


12. What is acceptable confirmation for the purchase or sale of my stock?
Confirmation slip
This is a receipt provided to the claimant for the business transaction. Confirmation slips contain the trade date, number of shares purchased or sold and the price per share.

Account statement
Your account statement is acceptable so long as it includes the sections titled “Account Activity” or “Transaction Details.” These sections must include the trade date, number of shares purchased or sold and the price per share.

Acceptable proof of the number of shares held at the beginning of trading on January 1, 2000
Please provide the account statement that shows the number of shares held on January 1, 2000, i.e. your December 1999 statement and/or January 2000 statement.


13. I cannot locate any confirmation or proof of purchase. What should I do?
Contact your brokerage company and ask them for a copy of the account statement and/or confirmation slip of the purchase and/or sale of the stock. Online confirmations are acceptable.


14. May I use my tax records as confirmation of owning Homestore stock?
Since the Schedule D forms are self-certifying forms, we can not accept federal tax returns as confirmation.


15. Can I sell my Homestore stock before the settlement distribution and still participate in the settlement?
Yes. You can sell your stock and it will not affect your claim in any way.


16. What is the status of the lawsuit?
Judge Lew granted final approval of the settlement with PricewaterhouseCoopers, LLP on January 11, 2006.

Judge Lew granted final approval of the settlement with Time Warner, L90 and Tafeen on December 4, 2007.

The proposed settlement with Cendant and Smith is currently pending approval. Any Class Member who objects to any aspect of the settlement, the Plan of allocation, or the application for reimbursement of costs and expenses must submit a written notice of objection, received on or before March 3, 2009.  Any Class Member may receive the benefit of the settlement with Cendant and Smith by filing a Proof of Claim and Release, postmarked on or before April 2, 2009.  A final approval hearing related to this settlement will occur March 16, 2009.


17. If I previously submitted a claim form with respect to the settlement with Homestore and/or with the individual defendants, Shew, Giesecke, DeSimone, Losh, Kalina and Rosenblatt, and/or with PricewaterhouseCoopers, LLP, did I need to submit a new Proof of Claim and Release Form with regard to the settlement with Time Warner, L90 and Peter Tafeen?
No. If you previously submitted a timely and valid Proof of Claim with regard to the settlement with Homestore and/or with the individual defendants, Shew, Giesecke, DeSimone, Kalina, Losh and Rosenblatt, and/or with PricewaterhouseCoopers, LLP, and/or with Time Warner Inc., Max Worldwide, Inc., formerly known as L90, Inc., and Peter Tafeen, and you wished to be included in the settlement with Cendant and Smith and be bound by the Judgment and Release, you are not required to complete another claim form or return another release. The information contained in that previously submitted, timely and valid Proof of Claim was considered timely and valid with regard to this additional settlement, as well.