Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
Federal judge has agreed to consolidate the Taylor and Armstrong lawsuits
A federal judge in Seattle has consolidated two related class-action lawsuits against Zillow into a single case.
The Taylor v. Zillow class-action lawsuit alleges that Zillow uses hidden fees and exerts pressure on real estate professionals to “steer” consumers to its mortgage business. In Armstrong v. Zillow, the class action alleges that Zillow exerts “enormous pressure” on real estate agents who use its popular Premier Agent or Flex programs to refer clients to Zillow Home Loans, preventing the use of outside lenders and resulting in borrowers paying more.
The consolidated action, led by plaintiffs Alucard Taylor and Araba Armstrong, combines Taylor v. Zillow with Armstrong v. Zillow under U.S. District Judge James L. Robart’s jurisdiction.
The plaintiffs now have two weeks following an upcoming ruling to file a consolidated class-action complaint, with defendants required to respond within five weeks of that filing.
FTC warns software companies as Trump admin appears focused on rentals
After the Department of Justice (DOJ) settled a lawsuit with rental software giant RealPage last month, another government regulator—this time the FTC—is warning other property management software companies that separate practices may be violating the law.
While RealPage was accused of price-fixing through algorithmic sharing of non-public, competitively sensitive data, the 13 other unnamed software companies are being scrutinized for not sharing information—with consumers.
In a release Dec. 9, the FTC said it had sent letters to 13 companies nationwide, with the letters stating that “(a)vailable information suggests that property management software providers are limiting the ability of rental property managers and owners to accurately advertise the total monthly rental price, inclusive of all mandatory fees.”
The letter clarifies that the FTC is “not intended to suggest that (the company has) engaged in illegal conduct,” but requests a “comprehensive review” of policies and practices to ensure compliance.
The moves suggest that regulators and law enforcement under the new Trump administration are still paying attention to real estate issues (though both these actions came on the rental side). National Association of Realtors® (NAR) Chief Advocacy Officer Shannon McGahn said earlier this year that the DOJ was more focused on tech than real estate under Trump.
After indicating it was still opposed to “blanket, upfront offers of buyer broker compensation” back in the spring, there have been no public updates on the DOJ’s investigation into NAR and real estate practices. Under Trump, the FTC also sued to block Zillow from striking a deal with Redfin, a case also largely focused on rentals.
Florida homebuyers drop class action against D.R. Horton
A group of Florida homebuyers voluntarily dismissed their class-action lawsuit against D.R. Horton on Dec. 4, roughly two months after alleging the nation’s largest homebuilder deceived first-time buyers by understating monthly mortgage payments.
Jennifer Wagner, senior attorney at the National Consumer Law Center, said consumer advocates are pursuing a broader case in Nevada.
“The Florida plaintiffs have elected not to continue individually, but the same practices are widespread, and the legal exposure for D.R. Horton and DHI Mortgage has grown,” Wagner tells RISMedia. “We are now advancing a broader, more comprehensive nationwide class action in Nevada that captures a wider array of mortgages, one that better reflects the full scope and the systemic nature of the harm.”
D.R. Horton did not immediately respond to a request for comment.
Man convicted of killing two agents 20 years ago has execution scheduled this week
Stacey Humphreys, 52, a man convicted of fatally shooting two real estate agents in Atlanta suburbs two decades ago, has been on death row and is scheduled for execution on Dec. 17 at 7 p.m.
He was convicted of malice murder in the Nov. 3, 2003 killings of 33-year-old Cyndi Williams and 21-year-old Lori Brown.
According to Georgia’s Attorney General’s office, Humphreys entered a home construction company’s sales office, threatening and abusing two women and eventually stealing their debit cards and executing them.
After the murders, the victims’ ATM cards were used to withdraw over $3,000 from their accounts. He told the police that he had recently taken out some high-interest “payday” loans and that he “got over (his) head with that stinking truck.”
