The hits keep coming for now-defunct residential sale-leaseback platform EasyKnock. After the company failed to have new council file an appearance, the court dismissed EasyKnock’s defamation lawsuit against law firm Feldman & Feldman last Monday.
Originally filed by EasyKnock in Nov. 2021 in federal court in Houston, the suit accused Feldman & Feldman of defaming EasyKnock in a post the law firm made on its website cautioning consumers to scrutinize the company’s transactions with financially distressed homeowners.
In its suit, EasyKnock said Feldman & Feldman had “stooped to shocking levels of deceit and predation to solicit business,” adding that they were “engaged in a campaign of barratry to lure customers of EK Real Estate through misrepresentations, false promises, and defamation of EasyKnock to engage with Defendants and file frivolous lawsuits against EasyKnock.”
Feldman & Feldman began working with clients throughout Texas to file lawsuits under the truth in lending act against EasyKnock in 2021. The suits accused EasyKnock of using a “deceptive and unfair lending scheme” to “lure homeowners with poor credit, but with significant home equity, into unlawful, usurious loans known as ‘Sell & Stay’ transactions.”
According to Feldman & Feldman, EasyKnock’s defamation suit forced the law firm to withdraw from the truth in lending suits it was involved in.
“Feldman & Feldman remains proud of the role it played in shedding light on Easyknock’s business practices and of its commitment to successfully fighting for clients in any forum necessary,” the law firm wrote in an emailed statement.
In addition to the consumer suits filed in Texas, EasyKnock is also facing suits in Maryland, South Carolina, Pennsylvania and Ohio, as well as actions from state regulators in Massachusetts, Michigan and Connecticut.
The platform shut down its operations in early December 2024.
As recently as a year ago, the New York-based firm closed a $28 million Series D funding round from new and existing investors, including Gaingels, Moderne Ventures, QED Investors and Zillow co-founder Spencer Rascoff. This followed a $57 million Series C round in February 2022. In 2018, the company raised $3.5 million in seed funding, including $100 million in new debt.
Starting in May 2023, the company went on an acquisition spree of sorts, staring with its acquisition of struggling power buyer firm Ribbon, followed by the acquisition of home maintenance company Onder, home equity investment firm Balance Homes, and home equity investment firm HomePace.
