Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
Zillow class-action claims dismissed (for now)
Judge James Robart of the federal Western District of Washington wrote in a 32-page order last week that a lawsuit filed by homebuyers against Zillow failed to show that the portal engaged in a conspiracy with real estate teams or engaged in practices that were “likely to mislead a reasonable consumer.”
The ruling represents a significant win for Zillow, even if it does not fully end the litigation, which was filed last year by one of the same class-action firms behind the original commission lawsuits.
“Plaintiffs fail to plead specific facts showing how Defendants’ practices actively undermined the home-buying process, restricted informed lender choice, or eroded trust in real estate professionals,” Robart wrote.
Robart will allow plaintiffs until Aug. 17 to update their lawsuit and fix what he called “deficiencies” in their arguments and evidence. Zillow remains embroiled in other litigation, mostly with rivals, as well as a lawsuit from shareholders over its failed iBuying venture.
This lawsuit, known as Taylor, took aim at the heart of Zillow’s “lead diversion” business practices, which are used in various forms by other consumer-facing real estate businesses.
“Zillow’s tools are free, optional and transparent—buyers choose how and whether to use them,” a Zillow spokesperson previously told RISMedia. “Zillow will continue building tools that give consumers more transparency and choice in the home-buying process.”
Woman suing eXp looks to have day in court
Anya Roberts, an eXp agent who sued the brokerage back in 2023 over alleged drugging and assaults by top recruiters, will likely take the case to trial later this month in California, claiming that eXp and its founder ignored evidence of a sex trafficking venture taking place as part of a recruiting “scheme.”
Four other women are suing the company with similar allegations, though a trial in their case was recently pushed back to 2028.
In a flurry of filings this week, Roberts, eXp and the two men accused of rape (both since separated from the company) urged a judge, among other things, to bar experts from comparing eXp to a pyramid scheme, prevent the jury from hearing about defendant’s personal wealth (including eXp Founder Glenn Sanford), disqualify other experts seeking to testify on the responsibilities of a brokerage to vet agents or the specific elements of sex trafficking, and modify questions asked of potential jurors before a trial.
The question of whether eXp had a legal obligation to vet the two agents—Michael Bjorkman and David Golden—looks likely to become a key issue at the trial.
eXp has denied any wrongdoing, claiming it quickly separated the men in question. In the other case, a federal judge ruled that plaintiffs plausibly alleged that eXp did not conduct any investigation into the men and lied to the women who came to them with allegations.
The trial is currently set to begin Aug. 31.
Company with $35 million billed from Burnett settlement under scrutiny
U.S. District Judge Stephen R. Bough last week appointed two “special masters”—third parties granted significant authority over witnesses, evidence and testimony—to audit JND Legal Administration’s billing in the Burnett and Gibson commission lawsuits against the National Association of Realtors® (NAR).
Bough oversaw the Burnett case and trial, which resulted in a nearly $1.8 billion verdict against NAR, HomeServices and Keller WIlliams.
Late last year, JND was accused in a consolidated federal lawsuit of participating in a kickback scheme with banks in order to maintain dominance of the lucrative settlement administration market. The company denied those allegations.
JND was contracted back in 2023 in the wake of the initial brokerage settlements to administer practical and logistical elements, including informing class members through millions of postcards and digital outreach.
Under the July 27 order, JND had 14 days to hand the special masters its original bid proposal or contract; a full accounting of hours and dollars billed since the case began, including individual timesheets; every timekeeper’s name, title and hourly rate; all third-party vendor invoices and documentation of any markups, rebates or revenue-sharing tied to its other clients.
The company did not respond to an RISMedia request for comment.
