A federal judge in Chicago on Tuesday dismissed a lawsuit brought by local homeowners against real-estate web site Zillow over their proprietary rankings of home values. The homeowners had filed suit in October alleging that Zillow's "Zestimates" violate Illinois laws against deceptive trade practices and consumer fraud. But Judge Amy St. Eve said that the Zestimates are "merely an estimate of the market value of a property, as supported by Zillow.com's statements." Zillow has acknowledged that the Zestimate formulas can be faulty, and in 2017 launched a contest that would offer $1 million for a better algorithm. Shares have gained 34% in the year to date, trouncing the flat showing for the S&P 500 [s:spx].
More From MarketWatch