How They Won It: Paul Hastings Saves Ex-Homestore CEO $1.3B

October 19, 2011

By Scott Carlton

Already serving more than four years in prison for his alleged role in a $67 million accounting scandal, former Homestore.com Inc. CEO Stuart Wolff turned to Paul Hastings LLP earlier this year to defend him in a related securities fraud class action and shield him from a proposed $1.25 billion judgment. He's glad he did.

Following a 10-day trial in February, a jury found Wolff liable for a handful of misstatements that contributed to shareholder losses. However, capitalizing on never-before-litigated provisions of the Private Securities Litigation Reform Act, Paul Hastings partner Howard Privette and associate Scott Carlton convinced a judge in August that the plaintiffs should "take nothing" from Wolff.

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