Homestore.com: Wolff Heads Home

Homestore.com (HOMS) announced the resignation of founder and CEO Stuart Wolff in the wake of an accounting investigation that could result in a substantial restatement of revenues. Wolff was replaced as head of the leading provider of online home listings by Michael Long, former chairman of online health site WebMD (HLTH). Trading in Homestore shares, which had been halted for two weeks, resumed at around 2, a fraction of its former high. Thirteen lawsuits alleging profiteering by Wolff and other insiders have been filed. Among the biggest losers was Cendant (CD), which sold its online real estate business to Homestore two years ago in exchange for $641 million in stock. A Cendant spokesman said that the company may write down the value of its Homestore stake in the fourth quarter, possibly to zero.