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

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.