L90 Examines Transactions with Homestore.com

NEW YORK — Currently the subject of an SEC probe, said Tuesday that it is conducting an internal investigation to determine whether it may have overstated or misstated revenues in the past.

According to a statement, L90’s internal investigation is primarily focused on two transactions between the company and Homestore.com in the second and third quarters of last year, any barter transactions involving the company and any other transactions of a similar nature. The company hopes to conclude the process in about two to three weeks.

The Los Angeles-based online media and direct-marketing company initiated the internal audit in response to the Securities and Exchange Commission investigation into its financial records, which began in early February.

Earlier this week, eUniverse scrapped its proposed merger with L90 due in part to the SEC probe [IQ Daily Briefing, March 12]. The aborted merger followed two top executive depatures at the company.