Proptech firm Roomster, in which the website tells people they can "Find and rent your perfect room," faces a big legal attack. The Federal Trade Commissions and six states—California, Colorado, Florida, Illinois, Massachusetts, and New York—have all filed suit against the company, its principals, and a third party.
Seeking a permanent injunction as well as monetary and other relief under various federal and state laws, the plaintiffs said that Roomster and owners John Shriber and Roman Zaks "allegedly duping consumers seeking affordable housing by paying for fake reviews and then charging for access to phony listings," said an FTC press release.
"The complaint alleges that Roomster and its owners have taken tens of millions of dollars from largely low-income and student prospective renters who need reliable housing the most and can least afford to lose money," it continued.
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