The residential and business actual property firm sued over misuse of commerce secrets and techniques in 2023, however revealed in a brand new court docket submitting {that a} rival tech platform’s “limited nature” is now not a menace.
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One 12 months after CoStar sued the founding father of Homesnap, alleging he stole commerce secrets and techniques, the commercial-turned-residential large has now dismissed the swimsuit, citing the “limited nature” of a rival product.
CoStar filed a discover of voluntary dismissal Wednesday. The submitting brings to a detailed a case that has its roots again in 2020, when CoStar acquired Homesnap as a part of its then-budding push into residential actual property. Nonetheless, three years later, CoStar alleged that Homesnap founder Man Wolcott employed away former Homesnap workers from CoStar. Wolcott then allegedly used the workers to assist him in a brand new enterprise enterprise after they’d been uncovered to proprietary CoStar commerce secrets and techniques.
Wolcott’s LinkedIn profile lists his present place as “founder” of Homesnap. However in response to CoStar’s authorized submitting Wednesday, Wolcott based Taking place Know-how after the Homesnap acquisition. He then introduced his firm’s product to CoStar executives as a possible various to CoStar’s personal platform.
“What was shared of the Happening product, developed by former CoStar employees with detailed knowledge of CoStar’s proprietary systems, mirrored CoStar’s proprietary platform,” the submitting states. “CoStar raised these concerns with Defendants, but they obfuscated.”
Taking place and Wolcott had been each named as defendants within the lawsuit, as had been three former Homesnap workers, together with former CEO John Mazur.
The case finally moved into arbitration. CoStar was additionally in a position to conduct discovery within the case, which allowed the corporate to “compare what Mr. Wolcott initially presented to CoStar with the actual state of defendants’ product,” the submitting states.
Evidently, CoStar discovered that Wolcott’s product didn’t pose a menace in spite of everything.
“CoStar has since learned of the limited nature of Happening’s initial product,” Wednesday’s submitting states. “Moreover, CoStar has determined that the Happing product now lacks critical functionality present in CoStar’s proprietary data platform and cannot serve as a replacement for that platform. As a result, CoStar has confirmed that there is no longer a threat of imminent, irreparable harm and the need for further relief on its claims at this time.”
In an announcement, Gene Boxer — CoStar’s normal counsel — reiterated the conclusions talked about within the submitting to dismiss the case. And he acknowledged that CoStar will proceed to defend its know-how and commerce secrets and techniques going ahead.
“We have also made clear to defendants,” Boxer mentioned, “the potential future ramifications for any misappropriation of CoStar’s trade secrets.”
