Boston, MA 03/24/2014 (wallstreetpr) – Zillow Inc (NASDAQ:Z) is a provider of home and real estate-related information. The company’s products and services help consumers in the homeownership market to connect with local experts when they are buying, selling, borrowing, renting or remodeling properties. Now this is the exact business that Move Inc (NASDAQ:MOVE) does.
As direct competitors, the two companies try to keep their business secrets away from each other and this is mostly done by avoiding or limiting staff movement between the companies. But something happened early this month that has not gone down well with Move Inc which last week decided to sue.
Zillow Inc (NASDAQ:Z) hired an executive from Move Inc. And according to Move Inc, that amounted to breach of its business secrets and might weaken its business position. Thus, the company has sued Zillow and Errol Samuelson, its former chief strategy officer.
Shares of Zillow rose 3.33 percent to $100.24 during Friday session, while shares of Move Inc suffered 3.11 percent to $11.84 in the Friday session.
Controversial hire
Zillow Inc (NASDAQ:Z) seeks to be the one-stop shop for customers looking for everything real estate and homeownership information. In this manner, the company is enriching its information platform as its talent pool. Thus, Mr. Samuelson, being a strategist in matters real estate information business, seemed a highly valued asset. But as Move Inc claims breach in the hiring, Zillow has said that Mr. Samuelson has joined its ranks as a consultant.
Mr. Samuelson who is enjoined in the lawsuit by Move Inc is said to have spent weeks plotting his defection before turning up with a surprise resignation letter to the HR office. Yet, having worked with Move Inc for about a decade, he was at the center of some of the most crucial information about the company; information which Move Inc said have now been put in the wrong hands owing to the defection of its chief of strategy.
Zillow keep lawsuit talks out of its view
Zillow Inc (NASDAQ:Z) is yet to comment on the lawsuit brought against it and its new hire Mr. Samuelson. Instead, the company only announced that Mr. Samuelson will report directly to its CEO.
