A federal judge has dismissed a class-action lawsuit alleging Zillow used anticompetitive practices to drive up home prices nationwide. The suit named one of the Las Vegas Valley’s largest real estate brokerages as a defendant.
The lawsuit, originally filed in U.S. District Court in Seattle on Nov. 19, alleged online real estate giant Zillow employed “predatory practices” in helping potential homebuyers find properties, including hidden fees, “tricking” them into signing with a Zillow agent and monetizing every step of the homebuying process.
One of the brokerages named in the lawsuit against Zillow was Henderson’s GK Properties, which recently merged with Signature Real Estate Group, and includes the president of trade association Las Vegas Realtors, George Kypreos, who is also a Zillow flex agent.
“I have always maintained that our business practices were ethical and within the law, and this decision by the judge proves that our legal system works,” said Kypreos in an email statement to the Las Vegas Review-Journal. “This is a shared victory for myself and Zillow, but ultimately, it is a massive win for the consumer and the future of our industry.”
The judge in the case approved Zillow and GK Properties’ motion to dismiss, but is allowing the plaintiffs, one a Henderson resident and another a Californian who recently purchased a house in Las Vegas, to file an amended complaint.
“Procedurally speaking, they could file another amended complaint, but we maintain that their legal theories are baseless, and the comprehensive nature of the court’s ruling suggests they would face an uphill battle to even adequately allege a claim,” Zillow said in a statement to the Review-Journal.
In a statement on its website, Zillow said its tools are “free, optional and transparent — buyers choose how and whether to use them.”
Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.
