{"id":4730,"date":"2023-10-03T13:02:33","date_gmt":"2023-10-03T13:02:33","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2023\/10\/03\/former-homesnap-employees-stole-trade-secrets-costar-alleges\/"},"modified":"2025-03-13T02:53:07","modified_gmt":"2025-03-13T02:53:07","slug":"former-homesnap-employees-stole-trade-secrets-costar-alleges","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2023\/10\/03\/former-homesnap-employees-stole-trade-secrets-costar-alleges\/","title":{"rendered":"Former Homesnap employees stole trade secrets over online marketplace tech, CoStar alleges"},"content":{"rendered":"\n

Online real estate market provider CoStar Group<\/a><\/strong> has sued former Homesnap<\/a><\/strong> founder Guy Wolcott and three others for allegedly stealing trade secrets related to its online information platform feeding its various marketplace products, including Homes.com<\/a> and Apartments.com<\/a>, according to court documents obtained by HousingWire. The filing of the suit was first reported<\/a> by Inman News.<\/p>\n\n\n\n

The technology at the center of CoStar\u2019s offering is \u201cCoStar Sync,\u201d which \u201callows data from locally stored databases to be rapidly and efficiently accessed through CoStar\u2019s multiple product platforms,\u201d the complaint reads.

\u201cThis provides CoStar with a major competitive advantage over its competitors by creating superior products and substantially reducing CoStar\u2019s operating costs.\u201d<\/p>\n\n\n\n

\n

CoStar acquired Homesnap<\/a> in late 2020 for $250 million in cash, with $7.8 million each going to Wolcott and former Homesnap CEO John Mazur, according to the complaint.

All named defendants, including Wolcott and Mazur, were \u201ceither involved in the development of CoStar Sync or had access to substantial confidential and proprietary information regarding CoStar Sync and its development,\u201d the complaint alleges.<\/p>\n\n\n\n

All the former employees named in the suit went on to start a new company, Happening Technology<\/strong>, with CoStar alleging that they did so \u201cwith the apparent intention of repurposing the proprietary and confidential information they had access to and worked with at CoStar so that Happening Technology could offer competitive technology and services to CoStar\u2019s competitors.\u201d<\/p>\n\n\n\n

The complaint details that after starting the new company and platform, Wolcott traveled to the Washington, D.C. headquarters of CoStar to pitch an agreement between the companies to Frank Simuro, CoStar\u2019s chief technology officer and Adam Kleiner, its VP of software development.<\/p>\n\n\n\n

Following his presentation, Wolcott allegedly said in an email that his new company was also engaged in dialogue with Black Knight<\/strong>, which competes with CoStar in the real estate and property data business.<\/p>\n\n\n\n

\u201cBased on Wolcott\u2019s presentation, Simuro and Kleiner realized that Happening Technology\u2019s product was developed using CoStar\u2019s trade secrets and confidential information, including the CoStar Sync technology that the former employees worked on or had access to during their employment at CoStar,\u201d the complaint reads.

It continues: \u201cIndeed, in his presentation, Wolcott claimed many of CoStar\u2019s trade secrets as if they were conceived of and owned by Happening Technology.\u201d<\/p>\n\n\n\n

CoStar alleges that all named defendants breached their agreements not to disclose confidential company information when separating from CoStar, and not to \u201csolicit or recruit CoStar employees for other causes,\u201d the complaint alleges.<\/p>\n\n\n\n

CoStar says it has been \u201cseverely and irreparably harmed\u201d by the alleged actions of the defendants, adding that prior engagement between counsel for both companies did not lead to a solution, ultimately requiring this legal action which was filed in the U.S. District Court for the District of Columbia<\/strong>.<\/p>\n\n\n\n

CoStar seeks \u201cpreliminary and permanent injunctive relief enjoining Happening Technology from further misappropriation of its trade secrets and [to compel] the former employees from further misuse of CoStar\u2019s confidential information and breaches of the agreements,\u201d according to the complaint.<\/p>\n\n\n\n

CoStar also seeks monetary damages stemming from the costs and legal fees resulting from the suit.<\/p>\n\n\n\n

Representation for Happening Technology, Wolcott, Mazur and the other defendants have yet to file a response to the complaint in court as of Monday afternoon. When reached by Inman, Wolcott expressed confidence that the facts will determine \u201cno misappropriation or copying has taken place,\u201d he said in an email to the outlet.<\/p>\n\n\n\n

In a statement provided to HousingWire, a spokesman for CoStar Group expanded on the company’s perspective in the suit.<\/p>\n\n\n\n

\u201cIt is unfortunate that a small group of former employees sought to capitalize on their time at CoStar Group by taking the hard work and innovations of others here at CoStar Group, and attempted to pass it off as their own,” the spokesperson said. “We have therefore filed suit to protect CoStar Group\u2019s intellectual property and our employees\u2019 innovations. In the meantime, CoStar Group will continue to focus on innovating its ever-improving products that deliver the maximum value to our clients.\u201d<\/p>\n\n\n\n

Editor’s note:<\/em><\/strong> This story has been updated with a statement from CoStar Group.<\/em><\/p>\n<\/div><\/div>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

CoStar has sued former Homesnap employees over the alleged theft of its trade secrets, according to court filings.<\/p>\n","protected":false},"author":7007,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[3144],"class_list":["post-4730","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nFormer Homesnap employees stole trade secrets over online marketplace tech, CoStar alleges - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"CoStar has sued former Homesnap employees over the alleged theft of its trade secrets, according to court filings.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/preprod.realtrends.com\/blog\/2023\/10\/03\/former-homesnap-employees-stole-trade-secrets-costar-alleges\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Former Homesnap employees stole trade secrets over online marketplace tech, CoStar alleges\" \/>\n<meta property=\"og:description\" content=\"CoStar has sued former Homesnap employees over the alleged theft of its trade secrets, according to court filings.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preprod.realtrends.com\/blog\/2023\/10\/03\/former-homesnap-employees-stole-trade-secrets-costar-alleges\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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