Move is not backing down in the fight against CoStar
In his constant battle with CoStarthe parent company of Realtor.com doesn’t give up without a fight.
Initially submitted by Move Inc. in July, the lawsuit centers on James Kaminsky, a former Realtor.com employee who joined the CoStar-backed company Homes.com after dismissal by subsidiary Move. In the lawsuit, Move alleges that Kaminsky stole documents and trade secrets from Realtor.com, which he then provided to CoStar to fuel Homes.com’s rapid growth.
The company’s latest filing comes about two weeks after California District Court Judge George H. Wu denied Move’s motion for a preliminary injunction against CoStar. Move now alleges that Kaminsky violated the 1986 Computer Fraud and Abuse Act (CFAA) by accessing Move-owned documents approximately 40 times after he was fired by Realtor.com in January 2024.
According to the CFAA, individuals are prohibited from “intentionally accessing a computer without authorization or without authorization.” But the law “also fails to define what ‘without consent’ means,” according to the National Association of Criminal Defense Attorneys.
The law provides a maximum prison sentence of 10 to 20 years for obtaining national security documents, accessing a computer and obtaining information, extortion involving computers, and six other hacking crimes. Attempt and conspiracy to commit a CFAA crime carries a maximum penalty of ten years.
Move’s filing alleges that by deleting personal information and documents from his Move-owned computer after his dismissal and then accessing Realtor.com documents related to the News & Insights team, Kaminsky violated was with the CFAA. Furthermore, Move claims that it is unable to recover the files that Kaminsky allegedly destroyed.
Move also continues to claim that Kaminsky shared the documents he had access to with CoStar, which CoStar claims to have used to increase user traffic on Homes.com. Move claims that Kaminsky’s actions won him more than $5,000 in damages, which meets the CFAA’s threshold for allowing victims to take private action.
“Mr. Kaminsky’s attack on Move’s protected computer systems, both as an individual and as an employee of CoStar, caused significant damage – and certainly more than $5,000 in damages,” the filing states. “Move has spent significant time and resources investigating the nature and extent of the breach, taking steps to secure its computer systems and engaging a forensic expert to assist.”
If Wu grants Move’s latest motion, the company would be allowed to file a second amended complaint and begin discovery.
In an emailed statement, Gene Boxer, CoStar’s lead attorney, expressed gratitude that the court denied Move’s request for a preliminary injunction.
“The Court’s opinion underlines what CoStar has said all along: Move’s case is based on unfounded speculation, not facts. As we’ve said from the start, this case – which Move has tried to weaponize in the press – is a PR stunt in response to Move’s market failure. Apart from the inaccuracies in Move’s theory, Move’s complaint also fails as a matter of law,” Boxer wrote.
“CoStar has therefore taken steps to dismiss several of Move’s claims as legally deficient, including because Move failed to plead the required damages or because CoStar ever gained access to Move documents, computers or information. Whether at this stage or at conclusion, CoStar is confident that it will ultimately prevail in this case, both on the facts and the law.”
