Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
Judge dismisses most claims in Louisiana three-way agreement antitrust suit
A federal judge dismissed most of the claims in an antitrust lawsuit brought by four Louisiana real estate brokers who challenged the National Association of Realtors® (NAR), a state association and a local board as a condition of accessing the MLS.
Some claims were thrown out permanently, while others were dismissed with the option to refile within 21 days, and the state-level claims were set aside for now and could still move forward.
The brokers argued that this three-way agreement was anticompetitive, harmed consumers and disproportionately impacted minority real estate professionals.
Lead plaintiff Carla DeYoung said the plaintiffs were not discouraged by the ruling, noting the case is not fully over and saying that if antitrust violations exist anywhere, the three-way agreement tied to MLS access is a clear example.
Judge pauses discovery on Zillow class-action RESPA lawsuit
A federal judge in Seattle paused all fact-gathering in a class-action lawsuit against Zillow while he considers Zillow’s request to have the case thrown out entirely.
The case, now known as Taylor v. Zillow, accuses Zillow and several real estate partners of defrauding buyers, inflating home prices and steering customers toward Zillow’s own products—including Zillow Home Loans, in violation of the Real Estate Settlement Procedures Act (RESPA).
The judge noted that the pause is expected to be brief, that no case schedule has been set, and that the case has only been pending a few months.
REMAX settles buyer commission lawsuit
REMAX has agreed to pay $8.5 million to settle the Batton commission lawsuit.
Per a filing with the Securities and Exchange Commission (SEC) and court documents, the settlement agreement is “not an admission or concession of liability,” and REMAX continues to deny the wrongdoing alleged by the plaintiffs.
In a statement, a company spokesperson said it was “pleased” with the settlement, noting that it applies to sub-franchisors, franchisees and agents.
“Entering into this settlement is a business decision that brings certainty to what has been a long and uncertain situation. Moving forward, REMAX affiliates are able to continue putting buyers and sellers first—without distraction—as they deliver the best experience in real estate,” the spokesperson said.
CoStar expands copyright lawsuit against Zillow
CoStar Group has updated its copyright lawsuit against Zillow, alleging that Zillow is continuing to “publish” images it has watermarked and identified as copyrighted, including some that were previously removed by the portal after the lawsuit was filed.
In a statement to RISMedia, a Zillow spokesperson claimed that the updated allegations are “yet another proof point in the weaknesses of their arguments,” and reiterated the accusation that CoStar has a pattern of “wastefully leveraging litigation rather than competing on the basis of product quality and consumer experience.”
CoStar General Counsel Gene Boxer, in a statement provided to RISMedia, said that Zillow has become “increasingly brazen” in allegedly violating copyright protections.
“Zillow has the tools to stop—it is simply choosing not to, hoping that its mass-infringement scheme will return a profit. We look forward to holding Zillow to account,” he said.
Swalwell drops Pulte suit
Representative Eric Swalwell (D-CA) and Federal Housing Finance Agency’s (FHFA) Director Bill Pulte agreed to drop the lawsuit Swalwell had filed against him, though neither side has released an explanation as to why.
Swalwell had sued Pulte, claiming that he used his government position to target political opponents of President Trump. The original fraud accusation against Swalwell was that he listed a second home as his primary residence to get a lower mortgage rate, which he denied.
Swalwell is one of a handful of political figures accused of similar mortgage fraud—none of whom have been formally charged. The other cases involve New York Attorney General Letitia James, whose case was thrown out by a judge; Senator Adam Schiff, who remains under investigation; and Federal Reserve Governor Lisa Cook, whose case has reached the Supreme Court.
New criminal referrals against New York Attorney General Letitia James
Pulte filed two new criminal referrals against James, this time alleging homeowners’ insurance fraud rather than mortgage fraud.
The referrals claim James misrepresented how she used two properties on insurance applications.
The Department of Justice (DOJ) has already tried and failed three times to prosecute James on mortgage-related charges, with the most recent attempt falling apart in December after a federal grand jury refused to indict her. The earlier criminal case was dismissed by a judge who ruled the prosecutor bringing the charges had been unlawfully appointed.
James’s attorney denied the new allegations and called the effort a politically motivated revenge campaign.
