AOL, Cendant Get Named in Homestore Suit
AOL Time Warner
(AOL)
and
Cendant
(CD)
reportedly were among 16 companies hit with a lawsuit alleging that they contributed to the collapse of
TheStreet Recommends
Homestore
(HOMS)
.
The companies were named in a suit filed by the California State Teachers' Retirement System against Homestore, an online real-estate firm, according to media reports Sunday. The retirement fund had lost around $9 million on Homestore shares.
The fund had filed a suit in August alleging that Homestore inflated revenue through various complicated and questionable transactions. The fund filed its amended lawsuit late Friday in a U.S. District Court in Los Angeles, reports said.
According to the complaint, the defendants created complex "round-trip" transactions, with money flowing from Homestore to the companies and then back to Homestore, reports said.
