LOS ANGELES, CA — A complaint filed yesterday by California State Teachers’ Retirement System adds AOL Time Warner and several other companies as defendants to a previously filed suit against Homestore Inc. The complaint contends that executives of Homestore and AOL Time Warner invented schemes to inflate revenue of both companies without detection by creating three-way transactions that used bogus advertising buyers as intermediaries.

In 1998, Homestore began its relationship with AOL by paying for the right to be AOL’s exclusive source of real estate listings.

(via New York Times)