Complete Vindication: CoStar and Latham Defeat Trade Secrets Lawsuit Brought by News Corp’s Rival Site

Latham successfully defended our client CoStar Group, Inc. in a trade secrets lawsuit brought by News Corp subsidiary, Move, Inc., securing a dismissal of all claims with prejudice nine months into the case after threatening the plaintiff with sanctions. CoStar is a leading provider of online real estate marketplaces, information, and analytics, and owns Homes.com and Apartments.com, among other sites. Competitor Move operates rival marketplace Realtor.com.

In July 2024, Move filed a federal complaint in the Central District of California, accusing CoStar and a former Move employee of trade secret misappropriation. Together, Latham and CoStar pushed back immediately, in court filings, in the press, and in correspondence with Move, demonstrating that Move’s core allegation — that CoStar hired the former Move employee to launch a news division using Move trade secrets — was demonstrably false. Faced with the threat of Rule 11 sanctions, Move quickly amended its complaint, shifting to a new, vaguer, and equally baseless theory. When Move then sought a preliminary injunction, the Latham team took expedited discovery, and leveraged Move’s unprecedented refusal to take any discovery, to persuade the court to deny Move’s injunction request. Latham then filed and won a motion to dismiss two of Move’s claims.

Over the following months, CoStar pressed Move for evidence and continued to challenge the lawsuit’s legitimacy. In March 2025, Latham notified counsel for Move that CoStar would seek sanctions, including costs and attorney’s fees, if the case was not dismissed. In response, Move filed a motion to extend discovery by three months and delay the proceedings. The same day CoStar filed a detailed brief highlighting Move’s lack of both evidence and diligence in discovery, Move abruptly asked CoStar if it would consent to the dismissal of Move’s entire case — with prejudice. Accordingly, on April 7, 2025, and as covered in Law360, the Daily Journal, and many other outlets, the case was dismissed, vindicating CoStar entirely. CoStar paid nothing and agreed to nothing.  Move simply capitulated.

“We said we would win this case, and we did,” stated Andy Florance, Founder and Chief Executive Officer of CoStar Group. “We remain focused on winning where it counts — in the marketplace. Our 'Your Listing, Your Lead' model on Homes.com continues to resonate with agents, buyers, and sellers alike, and just as we’ve succeeded in court, we are confident we will continue to succeed in the market.”

“It was a privilege to partner with CoStar to achieve this victory,” commented Latham partner Nick Boyle. “The success is a testament to CoStar’s strong leadership at all levels — epitomized by CEO Andy Florance, and with legal steel in the form of General Counsel Gene Boxer and Head of Litigation Dan McCallum. They never wavered for a second, and that allowed us to execute an aggressive and multipronged litigation strategy. We look forward to standing shoulder to shoulder with CoStar in battles to come.”

The Latham team for CoStar was led by Nick alongside partner Matt Walch, with associates Anne Malinee, Jess Saba, Morgan Hoffman, Katherine Griffitts, Ruth Hirsch, Eleanor Allen, and Lindsay Hardy.

KEY BULLETS

• Owned by News Corp, CoStar rival Move, Inc. filed a trade secrets lawsuit in California federal court seeking damages and injunctive relief
• Latham acted quickly and aggressively, applying pressure through a motion for expedited discovery and multiple Rule 11 letters, as well as strategic media coverage with strong messaging
• Less than nine months after filing, and facing the prospect of sanctions, Move voluntarily dismissed the case with prejudice, resulting in a total victory and vindication for CoStar