Overview
- Judge James Robart granted Zillow’s motion to dismiss on Monday, finding the consolidated complaint failed to plead the facts needed to sustain RESPA and RICO claims.
- The court said Zillow’s public disclosures and the common cooperative compensation model undercut plaintiffs’ claim that consumers were misled or directly paid the challenged fees.
- Robart ruled plaintiffs lacked statutory standing under RESPA because the complaints did not show buyers paid the fees at issue and found RICO claims did not identify who committed fraud or how the enterprise operated.
- Plaintiffs may file a new complaint by August 17 to try to fix pleading gaps, while Zillow celebrated the decision and some defendants have already been dropped from the case but claims against eXp Realty remain pending.
- Separately, federal lawmakers have asked the FTC to probe lead-selling and referral business models, a regulatory thread that keeps scrutiny on Zillow’s Flex, Premier Agent and Zillow Home Loans practices even as the civil claims were dismissed for now.