Investigation News: Homestore - "One Company That Did It Right"

By April of 2001, Homestore had been crowned "the king of online real estate" by Business Week online, which described it as a "so-far meltdown-resistant dot.com." Board suspicions were raised and by November 2001, the audit committee of Homestore's board requested an internal investigation of scores of transactions to determine if revenues for the first three quarters of 2001 (and later, for all of 2000) had been improperly reported.  The New York law firm Cahill Gordon & Reindel LLP was engaged; the attorneys sought out members of FTI's Los Angeles Office to perform the forensic accounting.