Zillow Lawsuit Announced
The lawsuit is the result of a settlement reached between Zillow and a group of investors in August 2017.
This settlement was made after the company agreed to redesign its website to make it more user-friendly. The investors are now suing Zillow for deceptive advertising and other misrepresentations. The case is being appealed to by the investors. The shareholders have already been sued in the past, but it’s not clear whether the company will face any other legal action.
The suit claims that Zillow has abused its dominant position in the online real estate database market by conspiring with select brokers to stifle the free exchange of home valuation information. The company has a history of illegal behavior, including patent grabbing and lengthy court cases. The plaintiffs intend to address the illegality of Zillow’s monopolistic practices and expose its unfair and deceptive practices.
The plaintiffs claim that the actions of Zillow violated the Illinois Consumer Fraud and Deceptive Business Practices Act.
The complaint also claims that Zillow violated Section 8(a) of the RESPA. The plaintiffs also contend that the company failed to disclose its co-marketing program to the public. The company’s actions caused them to purchase its stock at artificially high prices, which caused its prices to decline.
The plaintiffs alleged that Zillow allowed lenders to pay more for the company’s co-marketing advertising product, which is akin to an estimate. They claimed that the lenders were paying more than 50% of the cost of advertisements for agents. The defendants denied the allegations and have refused to settle. The plaintiffs will likely try to replead the three claims against Zillow. They may be able to win the case if they can obtain a settlement.
Zillow has responded by stating that the rules against the company’s “other listings” tab are false and discriminatory.
They also claim that the rule allows agents to pay too much for their advertising and do not follow the rules. The plaintiffs claim that Zillow has to ensure that its agents get fair market value for their properties. It is important to note that the rule prohibits the use of co-marketing ads by a lender.
While Zillow’s Zestimates are not official appraisals, they are a “starting point” for the buyer. The Seattle-based company argues that the Zestimate is only a starting point. But the plaintiffs may try to replead the claims against Zillow, arguing that the ruling was not fair and unfair to the home-buyers. Although there has been a ruling in favor of the plaintiffs, the case is still ongoing.
The plaintiffs argue that Zillow violated the Illinois Real Estate Appraiser’s Act in posting homes on its website without permission.
This has been ruled to be unfounded, but the lawsuit continues to remain. A ruling will allow the investors to recover some of their money, but the company could face more significant damages. In the meantime, the plaintiffs’ claims are a legitimate way to protect homeowners. They want the government to do its job.
Moreover, the lawsuit also claims that the Zestimate does not reflect the actual asking price of the home. The company says the listing price is inflated. The plaintiffs also allege that the Zestimate was too high, and this has made it difficult for buyers to decide whether or not to buy the property. Therefore, the company has denied the claim. The plaintiffs have been awarded over $4 million in damages. The CFPB investigation against Zillow is ongoing.
The Illinois Attorney General has ruled that Zillow has violated the state’s Consumer Fraud and Deceptive Business Practices Act.
The lawsuit was brought by an investor in Glenview, Ill., who claims that Zillow violated state law. If this is proven, the plaintiffs may be able to collect some money back, but the case has yet to be resolved. However, the CFPB has decided that the plaintiffs cannot sue Zillow.
The lawsuit has a lot of implications. The company has been accused of misrepresenting its compliance with RESPA. Despite these allegations, the company is not guilty of any other violations. This lawsuit has been pending for several years and has been successful in proving that Zillow violated RESPA in many cases. Its settlement was a victory for the investors who were able to bring the lawsuit against the real estate giant.