A federal judge last week dismissed the countersuit brought by the National Association of REALTORS® (NAR) against Real Estate Exchange Inc. (REX).

The ruling is the latest in an ongoing legal dispute between REX and NAR and Zillow.

REX sued NAR and Zillow in March, alleging the trade association and online aggregator were working together to avoid or demote non-MLS listings such as REX’s. That antitrust suit is scheduled to proceed in federal court in Seattle.

In a counterclaim filed Jan. 27, NAR accused REX of false advertising and making false assertions about its own services. 

U.S. District Judge Thomas S. Zilly dismissed the counterclaim, finding NAR failed to show it had suffered “reputational harm” as a result of REX’s assertions.

“The allegations in NAR’s counterclaim are insufficient to show that the reputational harm it has allegedly suffered is concrete and particularized,” Zilly wrote in his ruling.

NAR has until June 6 to amend its counterclaim, if it chooses.