NEW YORK, Feb. 15, 2002 (PRIMEZONE) -- According to Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com), which has filed a class action lawsuit against Homestore.com ("Homestore.com" or the "Company") (Nasdaq:HOMS) and three of the Company's senior officials on behalf of all those persons or entities who purchased the common stock of Homestore.com during the period between May 4, 2000 through December 21, 2001 (the "Class Period"), shareholders have until Monday February 25, 2002 to seek appointment by the Court as one of the lead plaintiffs in this action.
The lawsuit charges that defendants issued a series of false and misleading statements during the Class Period concerning the Company's publicly reported revenues and earnings. As a result of these false and misleading statements, the market price of the Company's common stock was artificially inflated during the Class Period. On December 21, 2001, after the close of the market, Homestore.com disclosed that the Company was conducting an inquiry into its accounting practices. The Company also announced that it would restate certain of its financial statements. In response to this announcement, the Nasdaq Stock Market halted trading of Homestore.com's stock.
Thereafter, on January 2, 2002, Homestore.com announced that the Company had overstated its advertising revenues for 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 transactions under review included transactions that occurred in 2001, as well as in 2000, and that there may be additional material restatements of the Company's financial results.
If you purchased the common stock of Homestore.com during the Class Period, you have until February 25, 2002 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca