It’s happening! exist Inman Connect Las Vegas, July 30-August. On January 1, 2024, the noise and misinformation will be cut away, all your big questions will be answered, and new business opportunities will be revealed. Join us virtually.
Nearly a week after Move and CoStar Group filed competing expedited requests in a trade secret theft lawsuit, California District Judge George H. Wu ruled in favor of CoStar’s expedited discovery request. Judge Wu ordered attorneys from both sides to meet and outline the terms of discovery. If they cannot agree on the terms, they have until August 5 to submit a joint brief explaining the outstanding issues.
“We are pleased that the court rejected Move’s attempt to obtain an injunction without discovery and granted CoStar’s motion,” CoStar general counsel Gene Boxer said in an emailed statement to Inman. Discovery request and hearing set for September “We have always said that Move’s case is a public relations stunt, and Move’s attempt to conceal the facts is consistent with that. We look forward to holding Move accountable.”
Participate in the July INMAN Intel Index Survey
Although Judge Wu ruled in favor of CoStar’s request, a Realtor.com spokesman said the company did not view the ruling as a loss because the company’s requests for a preliminary injunction and limited accelerated discovery are still being considered. In a one-page ruling, Wu postponed the injunction hearing and limited expedited discovery of evidence until 8:30 a.m. Sept. 23
“The latest documents only bolster our case,” a spokesperson said in an email to Inman. “CoStar employees have admitted under oath to accessing and deleting many of Move’s electronic files, corroborating our allegations.”
“Although CoStar initially denied any wrongdoing, they have placed employees on leave,” they added. “Today the judge acknowledged that CoStar’s conduct appeared to be inappropriate, and we fully agree.”
Judge Wu’s ruling is the first major step in litigation between Move and CoStar, which has been locked in an intensifying battle over the past year over CoStar’s claim for website traffic to its residential portal Homes.com.
Move escalated its crackdown on CoStar on July 3, filing a trade secret theft lawsuit that claims former Realtor.com editor James Kaminsky accessed documents in Move’s possession outlining information about Realtor.com news and Insights into editorial budgets, audience and revenue numbers, and core messaging on employment. A summary of several Move employees supporting CoStar’s traffic growth efforts.
Move has since filed multiple requests, including a preliminary injunction preventing Kaminsky and CoStar from accessing files in Move’s possession, limited expedited forensic discovery of Kaminsky’s electronic devices (e.g., desktop computers, laptops, cell phones), and requests for expedited protective orders to prevent disclosure of confidential and trade secret information during the discovery process.
CoStar responded with several filings of its own, including requests to expedite discovery and reschedule the preliminary injunction hearing. CoStar said the expedited discovery, which was approved Monday, will give the parties access to unredacted versions of previously filed documents and accompanying evidence so that both parties can file “more comprehensive briefs” before the preliminary injunction hearing.
They also placed Kaminsky on administrative leave “out of an abundance of caution” to allay Move’s concerns about providing unredacted documents during the discovery process.
Kaminsky spoke publicly for the first time on July 25 in a 36-page statement outlining his recollection of the incident and expressing support for CoStar’s documents. Kaminsky said in a statement that Move’s layoffs were “surprising” and left him looking for a new job for six months before his severance package ran out.
The former Realtor.com editor said he deleted “financial, personal and medical information” from devices and email accounts owned by Move and only accessed a few files owned by Move, including his team’s salaries and bonuses , an ongoing list of Realtor.com news.
He said the documents did not contain any proprietary information and were intended to “joy his memory” about his accomplishments at Move during his job search. He said he has only accessed the files twice since starting his job at CoStar on March 11 — once when he searched for payroll information in old Move emails and realized Move had not removed his from those files. personal email address, and another time when he accidentally clicked on a document titled “News and Insights Content Platform.” That link and several others are no longer active, he said.
“I am not doing any work at CoStar that competes with Move’s News and Insights Group, nor am I assisting anyone at CoStar in doing so,” the statement read. “I am currently on administrative leave. I do not have access to CoStar’s computer systems. I did no work for CoStar other than assisting in responding to Move’s lawsuit.
Kaminski’s lead attorney, Ethan J. Brown, managing partner of Brown Neri Smith & Khan LLP, said he was pleased with the court’s decision and said it was clear his client was “being used as a pawn by Move to attack CoStar.”
He said in an emailed statement: “Given his personal circumstances – he was sacked by Moff after many years of exemplary and very successful service, while being the sole breadwinner for his family of four – Moff defamed Mr. Kaminsky’s decision is inexcusable “…Mr. Kaminsky is a sacrificial lamb and is viewed as little more than collateral damage in Move’s attempts to counterattack its competitors. “
“If Move had any genuine concerns about Mr. Kaminsky’s behavior, they would have been quickly resolved if they had just picked up the phone and called him to discuss what he did and why he did it,” he added . “Move and its CEO are directly responsible for the significant personal and reputational damage this unnecessary legal action has caused to Mr. Kaminsky. Mr. Kaminsky has an unblemished record of decades in senior media positions.”
Email Marianne McPherson
