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Newman Ferrara Announces Class Action Against Airbnb Inc. For Illegal Transactions As Unlicensed Broker In New York

NEW YORK, February 12, 2016 (BUSINESS WIRE) – Newman Ferrara LLP announced today that the firm filed a class action lawsuit in the United States District Court for the Southern District of New York against Airbnb, Inc. ("Airbnb" or the "Company) for violations of New York law.

The lawsuit, entitledPlazza v. Airbnb, Inc., 16-cv-01085, alleges that Airbnb has engaged and continues to engage in illegal real estate broker transactions in violation of Sec. 440 of New York Real Property Law (NYRPL) as well as Sec. 349 of New York General Business Law.

Through its website, Airbnb lists and advertises property available for rent in New York (and other cities around the world), facilitates the rental transactions, including procuring the rental agreements and processing rental payments, and takes fees and/or commissions for its services. NYRPL Sec. 440 unambiguously requires individuals and entities who engage in these activities to maintain a New York State-issued real estate broker's license. Nevertheless, Airbnb does not presently and has never had such a license. Consequently, the fees and commissions the Company has charged are illegal.

"Airbnb's business model falls squarely within New York real estate broker licensing requirements," stated firm partner, Jeffrey M. Norton. "There are very limited exceptions to this law and Airbnb does not qualify."

If you have paid any fee, commission, or rent to any or all of the listed sites, (,,,, or some other short-term/vacation rental website) for the purpose of listing and/or renting real property in New York, you may contact Newman Ferrara attorneys Lucas A. Ferrara (, Jeffrey Norton ( or Danielle Sullivan ( Plaintiffs in this matter are also represesnted by the Law Office of Kent L. Gubrud, P.C.

Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at


Newman Ferrara LLP
Lucas A. Ferrara
Jeffrey M. Norton
1250 Broadway, 27th Fl.
New York, NY 10001
Tel: (212) 619-5400

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