Key facts
- Zillow had claims of RESPA and racketeering violations dismissed.
- A federal judge ruled the plaintiffs' complaint lacked sufficient factual allegations and standing.
- The dismissal pertains to Zillow's Flex referrals program.
- Plaintiffs in the Sitzer/Burnett and Gibson cases are seeking a data-sharing agreement with MLSs.
- This data-sharing pursuit may serve as a compliance warning for the real estate industry.
- The warning relates to new commission rules.
- The Sitzer/Burnett and Gibson cases have been significant in reshaping commission structures.
A federal judge has dismissed Real Estate Settlement Procedures Act (RESPA) and racketeering violation claims against Zillow in a case related to its Flex referrals program. The court determined that the plaintiffs' complaint did not contain sufficient factual allegations and that they lacked proper standing. This ruling offers Zillow a reprieve from these specific charges.
In parallel developments, plaintiffs involved in the Sitzer/Burnett and Gibson lawsuits are actively seeking to enforce a data-sharing agreement with Multiple Listing Services (MLSs). This legal maneuver is being interpreted as a potential compliance warning for the broader real estate industry. The push for data sharing comes in the context of evolving commission rules, suggesting that industry participants need to be vigilant about adhering to new regulations and data handling requirements.