Key facts
- HouseCanary filed for Chapter 11 bankruptcy protection after defaulting on a $30 million loan.
- The company is seeking up to $260 million from Rocket Close (formerly Amrock) related to a trade secret verdict.
- A jury awarded HouseCanary $175 million in compensatory damages and over $201 million in punitive damages in a second trial.
- The court has not yet issued a final judgment in the lawsuit.
- The dispute between HouseCanary and Amrock began over a decade ago following a limited deal for Amrock to use HouseCanary's software.
HouseCanary has filed for Chapter 11 bankruptcy protection, aiming to prevent a lender from seizing its operations before it can collect a potential $260 million from Rocket Close, formerly Amrock. The company defaulted on a $30 million loan that came due in January.
The legal battle between HouseCanary and Amrock dates back over a decade, originating from a limited agreement for Amrock to use HouseCanary's property valuation software. HouseCanary alleges that after 18 months of work, Amrock refused payment and sued for breach of contract, claiming the products were unusable. HouseCanary counter-sued, asserting that Amrock used the agreement to access its intellectual property and develop competing software.
A Texas jury initially ruled in favor of HouseCanary in March 2018, awarding over $706 million, which was later increased to $740 million. However, this verdict was overturned on appeal in 2020, leading to a new trial. The second trial concluded in March 2026 with a jury awarding HouseCanary $175 million in compensatory damages and over $201 million in punitive damages. A final judgment has yet to be issued, with legal issues including attorneys' fees and a motion to limit damages still pending.