Online real estate firm Homestore Inc. will pay $23 million in a settlement reached with MemberWorks Inc. and other former shareholders of iPlace Inc.
In March 2001, MemberWorks filed a lawsuit against Homestore for securities fraud and other causes of action. As a result of the action, in May 2002 MemberWorks obtained a court order placing $58 million of the proceeds which Homestore received from the sale of the iPlace assets in a trust in favor of the plaintiffs. The parties reached the settlement whereby $23 million of the trust will be released to the plaintiffs, according to news reports.
MemberWorks sold iPlace, its online credit service subsidiary, to Homestore.com in August 2001 for $150 million in cash and stock.
MemberWorks portion of the settlement is $19.2 million in cash, the firm said.
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