In Re Homestore. Com, Inc. Securities Litigation

ORDER CLARIFYING PRIOR ORDER OF MAY 11, 2004

This matter comes before the Court on Defendant PricewaterhouseCoopers LLP’s (“PwC”) motion for clarification of the Court’s May 11, 2004, order on scienter, pursuant to Federal Rule of Civil Procedure 59(e) and Local Rule (WAWD) CR 7(h). Specifically, PwC seeks an order modifying the Court’s prior order to include a determination that PwC did not “knowingly” commit securities violations, effectively entering summary judgment as to PwC’s potential joint and several liability under 15 U.S.C. § 78u-4(f)(2)(A) (2004). That statutory provision allows a defendant to be held jointly and severally liable only if the trier of fact specifically determines a defendant to have “knowingly committed a violation of the securities laws.” (Id.). PwC argues that the Court implicitly held that no issue of fact exists as to this higher level of scienter when it held that “[wjhether PwC’s failure to uncover the true nature of these transactions sooner was excusable, negligent, or reckless, is a determination to be made by the trier of fact.” (May 11, 2004, Order at 21).

Having considered PwC’s motion for clarification, and having determined that no…