In Re Homestore. Com, Inc. Securities Litigation

ORDER DENYING DEFENDANT WOLFF’S MOTION FOR SUMMARY JUDGMENT

INTRODUCTION

This matter comes before the Court on Defendant Stuart H. Wolffs Motion for Summary Judgment (Dkt. No. 361). By his motion, Defendant Wolff argues that Plaintiffs cannot, as a matter of law, demonstrate that he acted with scienter under Section 10(b) of the Securities and Exchange Act of 1934,15 U.S.C. § 78j(b), and Rule 10b-5, 17 C.F.R. § 240 .10b-5(b), promulgated thereunder. Defendant Wolff also argues that Plaintiffs cannot, as a matter of law, demonstrate that he is a “control person” under Section 20(a) of the Securities and Exchange Act of 1934, 15 U.S.C. § 78t(a). Having considered the Motion, the responses, and exhibits, filed by the parties, and having heard oral argument on the issues, Defendant Wolffs Motion is hereby DENIED in its entirety. Under Section 10(b) and Rule 10b-5, Plaintiffs raise issues of material fact that Defendant Wolff acted with scienter throughout the class period. Under 20(a), Plaintiffs raise issues of material fact that Defendant Wolff had sufficient day-to-day responsibilities and control over Home-store and did not meet the burden of proving he acted in good…