Auction.com sued for alleged use of shill bidder

Suit claims the site and the property's loan holder worked together to boost sales price

New York /
Dec.December 26, 2014 11:45 AM

Auction.com is being sued for allegedly inflating the price of one of its online listings through the use of a shill bidder.

Google invested $50 million in the site in March, according to the New York Post. The suit is expected to go to trial next year.

Village at Redlands Group claims in the lawsuit that Auction.com allegedly either used a shill or turned a bidder into one while auctioning off cottages for $7.4 million. The houses are located roughly 65 miles east of Los Angeles, the newspaper reported. VRG charges that a bid of $5.4 million would have been enough to secure the property. According to the lawsuit, Auction.com was working with the property’s loan holder to “unfairly inflate the price that would be paid by a qualified bidder,” the Post reported.

Property agents have complained about the website before, which uses anonymous bidders on behalf of sellers to make sure the minimum price for a property is met, according to the newspaper. Auction.com, however, doesn’t consider that a shill bid. The website has denied that it uses such bidders. [NYP]Claire Moses


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
A photo illustration of No. 15 Shouson Hill Road West in Hong Kong (Emperor International Holdings Limited, iStock)
Hong Kong’s priciest 2022 home fetches $111M
Hong Kong’s priciest 2022 home fetches $111M
Extell's Gary Barnett, Robert Gans and an aerial of 616 11th Avenue (Robert’s Steakhouse, Google Maps)
Investor Robert Gans files for bankruptcy to thwart Barnett, Eli Tabak
Investor Robert Gans files for bankruptcy to thwart Barnett, Eli Tabak
Accurate CEO Jack Klugmann and the Fairfield, CT Metro North train station (Accurate, Robert Mortell/via Wikimedia Commons, iStock)
NJ developer buys languishing project in Fairfield
NJ developer buys languishing project in Fairfield
Kohl's CEO Michell Glass (Kohl's, iStock)
Kohl’s looking to cash in on $8B real estate portfolio
Kohl’s looking to cash in on $8B real estate portfolio
From left: Marjorie Velázquez, Vanessa Gibson, and Dan Garodnick with Bruckner Boulevard
Bronx BP defies Nimbys on controversial Throggs Neck project
Bronx BP defies Nimbys on controversial Throggs Neck project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...