realestate

CoStar's Victory Faces New Challenge

Federal Judge Dismisses Two Claims in Realtor.com Trade Secrets Case

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federal judge has granted CoStar's request to dismiss two trade secrets claims from Move's lawsuit, but Move plans to proceed with an amended complaint. This is the latest development in a contentious battle between CoStar and Move over allegations of trade secrets theft.

    The dismissed claims alleged that CoStar and James Kaminsky, a former Realtor.com employee, violated the Computer Fraud and Abuse Act (CFAA) and the Comprehensive Computer Data Access and Fraud Act (CCDAFA). Kaminsky joined CoStar's Homes.com division after being laid off from a similar role at Realtor.com in January. Move claimed he continued to access confidential files while at CoStar.

    U.S. District Judge George H. Wu noted that only one of CoStar's arguments for dismissal had merit, but allowed Move to proceed with an amended complaint. This means Move can attempt to further quantify the losses and damages incurred as a result of Kaminsky's actions. In a previous hearing, attorneys for Move likened the alleged trade secret theft to an unfair competitive advantage.

    CoStar is celebrating this latest win, calling Move's case "a sham" and suggesting it should drop its claims and focus on fixing its business model. However, Judge Wu made it clear that the case is not over and there are still sufficient allegations of wrongdoing or harm from Move. Move has three weeks to file an amended complaint with revised details and claims. A spokesperson for Move stated they will proceed with all six of their claims after making minor adjustments.

CoStar CEO faces new challenge in court after recent victory.