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
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Port Authority Inks Deal to Bring $145M Cargo Hub to JFK (iStock)
Port Authority inks deal to bring $145M cargo hub to JFK
Port Authority inks deal to bring $145M cargo hub to JFK
Harbor Group’s Jordan Slone (right) and Cammeby's International founder Rubin Schron (iStock)
Harbor Group, Cammeby’s team up on $1B NJ apartment buy
Harbor Group, Cammeby’s team up on $1B NJ apartment buy
Gary Barnett has another problem at UES site: a stabilized tenant
Gary Barnett has another problem at UES site: a stabilized tenant
Gary Barnett has another problem at UES site: a stabilized tenant
Stuart Miller of Lennar with The Maddox complex (Lennar, LMC)
ING “green building” loan program targets energy upgrades
ING “green building” loan program targets energy upgrades
The measure bars landlords from evicting tenants who suffered a financial hardship brought on by the pandemic. (Getty)
LA extends eviction moratorium
LA extends eviction moratorium
arrow_forward_ios

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

Loading...