SEC Files Brief in Homestore.com Case

The Securities and Exchange Commission said it should be easier for private citizens to sue accountants, lawyers, vendors and others for securities fraud.

In a legal brief supporting a fraud claim against Homestore.com Inc., SEC lawyers argued that the legal threshold for deciding whom can be sued in such cases was too high. Plaintiffs should be allowed to sue those indirectly involved in a fraud as well as those directly responsible, the brief said.

The 9th U.S. Circuit Court of Appeals based in San Francisco is weighing whether Time Warner Inc., Cendant Corp. and L90 Inc. are legally responsible for transactions with Homestore.com that Homestore allegedly used to inflate its revenue.