A New York-based corporation has filed a lawsuit against a major real estate company alleging significant financial harm due to misrepresentations and predatory actions. Nitka, Inc. filed the complaint in the United States District Court for the Eastern District of New York on August 14, 2024, against Zillow, Inc.
The case centers around allegations that Zillow approached Nitka in late 2022 to identify and recruit specialized technical support staff from new international markets where Zillow had not previously recruited. Nitka claims it was tasked with demonstrating the viability and cost-efficiency of sourcing talent from these markets. Relying on Zillow’s repeated assurances that a definitive written agreement would be forthcoming, Nitka incurred substantial expenses and undertook significant operational efforts. These included deploying senior executives, specialized recruiters, and technical experts to oversee and execute the staffing process according to Zillow's high standards.
Nitka alleges that it adjusted its insurance coverage, redirected resources from other projects, and conducted extensive market research to meet Zillow’s demands. Despite benefiting from Nitka’s services—including gaining insights into South American labor markets—Zillow abruptly put the project on indefinite hold after months of work by Nitka. This sudden halt caused substantial financial losses for Nitka, which missed business opportunities with other potential clients due to its commitment to Zillow, according to the lawsuit.
The plaintiff asserts claims for promissory estoppel, negligent misrepresentation, unjust enrichment, and quantum meruit.
According to the complaint, "Zillow accepted and benefited from Nitka’s services by gaining significant insight from Nitka’s market research and recruiting activities."
The complaint further states that "Nitka’s efforts provided Zillow with invaluable knowledge about the talent landscape in these regions," which allowed Zillow to make more informed decisions about future staffing strategies.
Nitka is seeking compensatory damages amounting to at least $1,244,150 for direct expenses incurred during the staffing process. Additionally, they are seeking special damages estimated at $3 million for lost business opportunities in 2024 due to resource reallocation towards meeting Zillow's demands. The plaintiff also seeks restitution for unjust enrichment and compensation under quantum meruit principles for services rendered without payment.
Representing Nitka is Daniel Goldenberg of Davidoff Hutcher & Citron LLP. The case has been assigned Case No.: 1:24-cv-5688.