CoStar Group controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2024
Alleged hotel price-coordination practices involving STR data
A proposed consumer class action alleged that CoStar and several hotel companies used competitively sensitive information distributed through STR reports to maintain artificially high room prices. The allegations were contested and the claims were later dismissed.
2022
Workplace monitoring and management allegations
Reporting cited claims from current and former employees that CoStar excessively monitored staff, used intrusive check-ins, publicly berated workers, and dismissed some employees arbitrarily. CoStar denied the allegations and said that dissatisfaction reflected demanding performance standards.
2020
CoStar sues CREXi over alleged intellectual property theft
Lawsuit filed
CoStar Group filed a federal lawsuit against CREXi, alleging copyright infringement, misappropriation and breach of contract. According to the filing, the suit seeks damages over CREXi's alleged use of CoStar content. The dispute concerns claims that CREXi used CoStar material without authorization. The case was reported as a legal action brought by CoStar against its competitor CREXi.
CoStar filed a federal lawsuit against CREXi alleging copyright infringement, misappropriation and breach of contract. The suit seeks damages over alleged use of CoStar content.
Source excerpt
The real estate data giant sued Los Angeles-based CREXi on Friday, saying its employees created fake accounts and accessed the CoStar database over 1 million times. According to the suit, the employees then uploaded at least 10,000 unauthorized images to its own site.
The lawsuit, filed in U.S. District Court for the Central District of California, alleges six claims including copyright infringement, misappropriation and breach of contract.
Friday morning, CoStar filed suit in federal court against CREXi, a Los Angeles-based company that operates an online commercial real estate marketplace, claiming "flagrant and widespread theft of CoStar's intellectual property."
2020
FTC Sues to Block CoStar Group's Acquisition of RentPath
Lawsuit filed
In December 2020, the U.S. Federal Trade Commission filed suit to block CoStar Group's proposed acquisition of RentPath. According to the FTC, the merger would eliminate a strong competitive alternative and harm customers. The agency's challenge was announced in connection with the transaction, and the event was subsequently referenced in a RentPath press release stating that RentPath terminated its agreement to be acquired by CoStar Group. The source material does not specify further details of the FTC's allegations, the outcome of the litigation, or the terms of the proposed transaction.
The FTC filed suit to block CoStar Group's proposed acquisition of RentPath, saying the merger would eliminate a strong competitive alternative and harm customers.
Source excerpt
The FTC filed suit because it believes that RentPath presents a strong competitive alternative to CoStar and the merger would have eliminated that competition to the detriment of customers.
2019
CoStar reaches $10.75 million settlement with Xceligent
Settlement
CoStar reached a $10.75 million settlement with Xceligent, which had alleged that CoStar's competitor stole thousands of images and proprietary information from its commercial listings platform. The report does not state whether the settlement resolved the allegations or included an admission.
Source excerpt
The Bethesda-based real estate data giant had alleged its competitor stole thousands of images and proprietary information from its commercial listings platform.