CoStar acquired Homesnap in late 2020 for $250 million in money, with $7.8 million every going to Wolcott and former Homesnap CEO John Mazur, based on the criticism.
All named defendants, together with Wolcott and Mazur, had been “both concerned within the growth of CoStar Sync or had entry to substantial confidential and proprietary data concerning CoStar Sync and its growth,” the criticism alleges.
All the previous staff named within the swimsuit went on to start out a brand new firm, Occurring Know-how, with CoStar alleging that they did so “with the obvious intention of repurposing the proprietary and confidential data they’d entry to and labored with at CoStar in order that Occurring Know-how may provide aggressive know-how and companies to CoStar’s opponents.”
The criticism particulars that after beginning the brand new firm and platform, Wolcott traveled to the Washington, D.C. headquarters of CoStar to pitch an settlement between the businesses to Frank Simuro, CoStar’s chief know-how officer and Adam Kleiner, its VP of software program growth.
Following his presentation, Wolcott allegedly mentioned in an e mail that his new firm was additionally engaged in dialogue with Black Knight, which competes with CoStar in the actual property and property information enterprise.
“Primarily based on Wolcott’s presentation, Simuro and Kleiner realized that Occurring Know-how’s product was developed utilizing CoStar’s commerce secrets and techniques and confidential data, together with the CoStar Sync know-how that the previous staff labored on or had entry to throughout their employment at CoStar,” the criticism reads.
It continues: “Certainly, in his presentation, Wolcott claimed lots of CoStar’s commerce secrets and techniques as in the event that they had been conceived of and owned by Occurring Know-how.”
CoStar alleges that each one named defendants breached their agreements to not disclose confidential firm data when separating from CoStar, and to not “solicit or recruit CoStar staff for different causes,” the criticism alleges.
CoStar says it has been “severely and irreparably harmed” by the alleged actions of the defendants, including that prior engagement between counsel for each corporations didn’t result in an answer, in the end requiring this authorized motion which was filed within the U.S. District Courtroom for the District of Columbia.
CoStar seeks “preliminary and everlasting injunctive reduction enjoining Occurring Know-how from additional misappropriation of its commerce secrets and techniques and [to compel] the previous staff from additional misuse of CoStar’s confidential data and breaches of the agreements,” based on the criticism.
CoStar additionally seeks financial damages stemming from the prices and authorized charges ensuing from the swimsuit.
Illustration for Occurring Know-how, Wolcott, Mazur and the opposite defendants have but to file a response to the criticism in courtroom as of Monday afternoon. When reached by Inman, Wolcott expressed confidence that the info will decide “no misappropriation or copying has taken place,” he mentioned in an e mail to the outlet.