A group of 30 Chinese consumers have filed a lawsuit against SouFun Holding Limited, a leading real estate Internet portal in China, along with several related real estate companies. The suit, which was filed in a U.S. court, alleges that the portal provided false information about housing properties in U.S, Beijing Morning Post reported. The consumers are now demanding compensation of $13.27 million from SouFun and the related companies.
One of the plaintiffs, Su Yun, said that he purchased 60 properties in Ohio from the real estate company IIP in 2013 at a total price of more than $2 million after seeing an advertisement on SouFun's platform. According to the advertisement, the houses were fully furnished, and IIP even guaranteed a yearly return of over 10 percent.
However, what Su discovered two years later was that most of the houses were barely decorated, and that they were filled with exposed pipes and clutter. In addition, the promised rent was not paid in full by IIP. Su had to spend a great deal of money on maintenance and furnishings, which turned into a huge economic loss.
Su, together with roughly 30 consumers who share the same experience, have sued IIP and SouFun in the United States District Court of the Northern District of Ohio, claiming compensation of $13.27 million.
According to SouFun, having verified the information published by IIP, it met its obligation as a real estate agency. However, the company said, it will respect both the facts of the case and the verdict.
The U.S. court suggested that the plaintiffs file a lawsuit in a Chinese court since both parties are from China. However, the plaintiffs appealed to the court. Now the case is moving forward.