CoStar Group’s application to expedite discovery in the data-theft lawsuit filed against them by Move, Inc. (Realtor.com®’s parent company) has been granted by the court.
Judge George H. Wu granted the application after hearing oral arguments yesterday. Wu also granted CoStar’s request for a hearing in late September.
“We are delighted that the Court rejected Move’s attempt to obtain an injunction without discovery, and granted CoStar’s request for discovery from Move, and for a hearing in September,” Gene Boxer, CoStar Group’s general counsel, said in a statement. “We have said all along that Move’s case is a PR stunt, and Move’s attempt to hide the facts was in line with that. We look forward to holding Move to account.”
A source with knowledge of the recent court proceedings stated that Wu expressed some skepticism that Move’s trade secrets were at issue, since the documents that were reportedly taken from Move were public articles about real estate.
Ultimately, Wu was not convinced of an emergency that would prompt an injunction, and agreed discovery was needed now.
A Realtor.com spokesperson responded to the filing: “The latest filings have only bolstered our case. CoStar’s employee has admitted under oath to accessing and deleting many of Move’s electronic files, confirming our allegations. Although CoStar initially denied any wrongdoing, they have put their employee on leave. Today, the judge acknowledged CoStar’s conduct appears to have been improper, and we couldn’t agree more.”
The application from CoStar, originally filed July 24, was almost immediately opposed by Move. This followed closely after Move’s request for an injunction to prevent CoStar from using proprietary information obtained by James Kaminsky, the employee at the center of the case.
Kaminsky, who has been placed on leave by CoStar while the case plays out, has denied any wrongdoing.
Ethan J. Brown, an attorney representing Kaminsky, told RISMedia via email he is “pleased with the Court’s granting CoStar’s…motion.”
“My client has explained his actions at length, and under oath. It’s plain that he is being used by Move as a pawn to attack CoStar. Given his personal circumstances—he was let go by Move after years of exemplary and highly successful service, while being the sole breadwinner of his family of four—Move’s decision to smear Mr. Kaminsky is inexcusable.
“Move is well aware that his new job at CoStar has nothing to do with his role at Move, and there is no evidence—nor could there be—that CoStar or Mr. Kaminsky used any Move confidential information to compete against Move. Mr. Kaminsky is a sacrificial lamb, treated as mere collateral damage in Move’s attempt to hit back at a competitor. If Move had any real concerns regarding Mr. Kaminsky’s actions, they would have quickly been resolved if they had just picked up the phone and called him to discuss what he did and why he did it.
“Move, and its CEO, are directly responsible for the significant personal and reputational damage they have caused Mr. Kaminsky, who has a spotless, decades-long career of high-level media positions, through the pursuit of this unnecessary legal action.”
