The dismissal of a class-action lawsuit against Zillow Group, Inc. (NASDAQ:Z,ZG) is good news for the company.
The lawsuit against the company claims that it provides appraisals of homes without a license to do so. This comes from Zillow Group, Inc.’s “Zestimates”, which offer estimates of a home’s value based on public records and possible additional information from owners.
U.S. District Judge Amy St. Eve is the one responsible for dismissing the lawsuit. In her statement, she says that Zillow Group, Inc. makes it obvious that their Zestimates aren’t actual appraisals of property. This also includes information on its website about how these estimates can be wrong.
The lawsuit against Zillow Group, Inc. over its Zestimates came from attorney Barbara Andersen. Andersen originally filed a case claiming that the Zestimate for her home was hurting her ability to sell it. She then went on to represent Vip Patel, who operates a homebuilding firm and claimed the Zestimates were hurting his business, reports Crain’s Chicago Business.
Zillow Group, Inc.’s argument against the lawsuit was the it has the First Amendment right to provide estimates on homes. It also said that the plaintiffs were unable to prove their claims. ZG says that it is happy with the dismissal of the lawsuit.
“The Zestimate has proven itself to be a sought-after and valuable free tool for consumers,” Zillow Group, Inc. told GeekWire. “It’s the most accurate computerized home value estimate anywhere, and serves as an important data point for millions of homeowners, buyers and sellers every day.”
Z and ZG stock were up slightly as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
