Move Accuses CoStar of Trade Secrets Theft

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Move accuses CoStar of hiring a former Realtor.com editor who allegedly stole and shared confidential information. Increasing hurricane activity is causing more damage and higher insurance costs, prompting property owners to adopt new technologies and storm-hardening strategies.

Move Accuses CoStar of Trade Secrets Theft

CoStar is no stranger to litigation. It famously won its legal battle with the now-defunct Xceligent and is currently suing Crexi for alleged data theft. Now, CoStar is being accused of misappropriating trade secrets by Move, the owner of Realtor.com and a rival of CoStar’s subsidiary Homes.com. The legal complaint, filed in California last week, alleges that CoStar knowingly hired James Kaminsky, the editor of Realtor.com’s News & Insights group. Move’s lawyers explained that Kaminsky had “knowledge of nearly every facet of the business, including strategy, organizational structure, and operational details.”

CoStar’s CEO Andy Florence addressed this new lawsuit in a lengthy and at times rambling interview, calling the lawsuit a “PR stunt.” Florence noted that Realtor.com is owned by News Corp, whose owner, the Murdoch family, is known for aggressive smear campaigns against business rivals. “They’re basically trying to sling mud at CoStar Group’s credibility or integrity, trying to imply that we did something wrong, which is ridiculous,” Florence said. “There’s no lawsuit here. There will be no trial.”

While hiring an editor of a news section from a rival does not on its surface seem like a clear case of stealing trade secrets, the lawsuit also alleges that the employee in question stole sensitive information from Move before his departure. “As he departed Move, Mr. Kaminsky stole confidential business information, sending it to his personal email account on the last day he had access to Move’s computer system,” the lawsuit alleges. “He established surreptitious, undetected ongoing access to allow himself (and, thus, CoStar) to spy on Move’s highly confidential documents stored on protected computer systems. Then, attempting to cover his tracks, Mr. Kaminsky deleted nearly a thousand files from his Move computer and wiped clean his entire browsing history before returning the device to Move.” It also accuses Mr. Kaminsky of spying on Move’s confidential documents “at least 37 times after CoStar hired him.”

Say what you will about CoStar’s record of defending itself and its data in court, this seems like a hollow accusation. But, if Move can prove that its former employee did steal sensitive information and knowingly passed it to CoStar, they could convince a jury of wrongdoing. CoStar has plenty of money and a large legal team to fight this battle, but this shows that the race for dominance between residential listing marketplaces is heating up, with competitors willing to fight each other in any way possible.

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Spotlight

Hurricane activity is rising, causing costly damages and higher insurance premiums for commercial properties, prompting owners to adopt new technologies and storm-hardening strategies to protect their assets.

What to Watch

Curious about what to expect in the softening multifamily market in the second half of 2024? Sign up for our next Propmodo Live webinar tomorrow, July 9th, where we will talk to experts from JLL, Defigo, and Veritas about how they plan to attract and retain residents in the changing multifamily landscape. We will explore how owners and managers can improve operational efficiencies while navigating a landscape of compliance hurdles and evolving technology.

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