Homestore’s Barter Arrangement Shows Versatility Of This Business Tool

949-831-0607

Bob Meyer

Platinum Sponsors:

Homestore’s Barter Arrangement Shows Versatility Of This Business Tool

Homestore, the No. 1 Internet real estate firm, has settled a stockholders’ lawsuit regarding puffed up revenue in 2000 and 2001 when the dot-com balloon began to deflate.

The $71 million settlement has a major barter component included, in that the lead plaintiff, the California State Teachers’ Retirement System, will receive 20 million shares of Homestore stock (at $2.90 per share) and the balance in cash.

The law firm representing CalSTRS agreed to be compensated in the same mix of stock and cash as their client. Acquiring shares in the company provides the retirement fund with the possibility of further benefit if the company grows in value.