The commercial real estate data provider CoStar Group (NASDAQ:CSGP) is being sued by Move Inc., the News Corp (NASDAQ:NWSA) subsidiary that operates Realtor.com, for hiring a Realtor.com employee who allegedly brought along his former employer’s trade secrets.
According to a Reuters report, the lawsuit filed on Tuesday in California federal court claims CoStar hired James Kaminsky, a former Realtor.com employee who provided his new employer with stolen documents related to business strategy, industry contacts and “a vast array of other competitively sensitive and valuable information.” The lawsuit added that CoStar is using this information to bolder Homes.com, a rival to Realtor.com which Move insisted “has not, until recently, been a significant player in the industry.”
“In Mr. Kaminsky’s role as Editor for Homes.com, use of the misappropriated Move information is plainly within the scope of his CoStar employment and directly benefits and aids CoStar,” the lawsuit stated.
Move asked the court for unspecified monetary damages and an order to prevent CoStar from using its trade secrets. A CoStar spokesperson refuted the lawsuit’s claims, insisting that Realtor.com is “attempting to divert attention from its business troubles by filing a baseless suit, rather than competing in the marketplace.”
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This is interesting as I recently met with a gentleman at Costar that used to work for another company (even though they bought the company- it sounds so familiar). He says they hired him because of his experience and knowledge of his form company….Sounds like a habit of Costar if you ask me!