The online real estate community is buzzing about a lawsuit filed by Active Rain Corp (an social networking site for real estate professionals) against Move Inc concerning a potential acquisition of the former by the latter. As the story goes, Move Inc (move.com)  approached Active Rain about a potential acquisition deal. After a non-disclosure agreement and a letter of intent (both useless as can be) to purchase from Move, Active Rain turned over what they claim to be trade secrets to them as part of the due diligence period. After taking a good look inside, Move Inc backed out of the deal and left “the Rain” hanging. As the court documents show, Active Rain claims that Move Inc had no intention whatsoever in purchasing the company in the first place and was simply trying to get access to the company’s core. As such they are suing Move Inc for 33 million bones. Move In claims all information is already available to the public and as such it has no value.

Sounds to me like this real estate network forgot the number one real estate rule: All agreements have to be on paper!

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