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 iBuyer lawsuit requests new trial date
A lawsuit by Zillow shareholders accusing the portal of “misleading” statements related to its short-lived iBuying business is aiming for a new trial date, with a jury likely to hear the case in just over a year from now.
Plaintiffs have alleged that Zillow overstated its ability to operate the iBuying business, which it had to abandon in late 2021, estimating at that time that it would lose about $550 million on its inventory of homes.
Both parties asked for an extension until August 2, 2027, back from the original date of April 26 for the trial to begin.
According to a court filing on July 1, the Supreme Court “requested a response” from lawyers representing the Zillow shareholders, as the high court considers Zillow’s appeal of multiple lower-court rulings that allowed the case to move forward.
Additionally, both Zillow and the plaintiffs asked the judge to delay notifying the class—made up of Zillow shareholders who owned or bought the stock in a three-month period in 2021—based on “any developments with Zillow’s petition (to the Supreme Court).”
In February, Judge Thomas Zilly, who is overseeing the case, declined to keep it paused after a circuit court affirmed his ruling in favor of the plaintiffs.
Zilly had not yet ruled on the proposed schedule change at press time. The Supreme Court had previously extended deadlines for arguments in the appeal.
Zillow, MRED and Compass complete two days of testimony in Chicago
Last week, Judge John Tharp, at a hearing at the Dirksen Courthouse in Chicago, weighed whether to lift the Temporary Restraining Order (TRO) that has blocked Zillow from enforcing its listing access standards against MRED’s listings (and stopped MRED from cutting off Zillow’s feed) since May while the broader antitrust case proceeds.
Witnesses on July 1-2 included Zillow Chief Industry Development Officer Errol Samuelson, Zillow CFO Jeremy Hofmann, MRED CTO Chris Haran, Compass CEO Robert Reffkin and MRED CEO Rebecca Jensen.
On the first day of testimony, Hofmann testified that permanently losing MRED’s feed would send the company into a “downward spiral,” describing a cascade of fewer listings, fewer consumers, fewer agents and lost revenue. On the second day of testimony, Reffkin testified that Zillow executives had threatened him with “carrots and sticks.” Similarly, Jensen described a call where Zillow executives warned her to expect her “phone to be dumped” as it allegedly pressured MRED to drop its longstanding private network
Simultaneous post-hearing briefs are due July 9, responses July 13 and a ruling will follow. The case is being closely watched as other MLSs and brokerages refocus on controlling their listings and data.
Compass hit with Florida class-action over $475 buyer ‘transaction fee’
A Florida couple has filed a proposed class action accusing Compass of unlawfully charging buyers a flat transaction fee tacked onto their purchase contract, adding a consumer-protection front to the brokerage’s litigation library.
Jeff and Melissa Efron filed the complaint June 23 in the Circuit Court of the 15th Judicial Circuit in Palm Beach County.
At issue is a $475 fee the Efrons say Compass added as an “additional term” to the standard “AS IS” Residential Contract for Sale and Purchase. Compass has argued the fee is standard.
The Efrons seek to represent a class of all Florida buyers charged said fee by Compass in the four years before filing.
