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Judge grants Zillow motion to dismiss RESPA, RICO lawsuit
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A federal judge granted a motion to dismiss one of the lawsuits accusing Zillow of a kickback scheme that steered borrowers to its more expensive in-house financing business and affiliated agents.
"Plaintiffs' claims of lack of notice are implausible given Zillow's express, repeated disclosures," Robart said in the order.
Originally filed in September by homebuyer Alucard Taylor, the lawsuit alleged Zillow's Flex agent referral program was deceptive and helped maintain high fees.
It was combined a month later with another lawsuit, which accused Zillow of pressuring agents to steer buyers to Zillow Home Loans for preapproval by rewarding them with more and better leads.
"What the court ultimately found was that plaintiffs had described ordinary business activity and called it a conspiracy," Zillow said.