SPRINGDALE, Ark. —  A developer who claims sales in a subdivision stopped after a sex offender and his wife bought a home has sued the couple and the real estate company that arranged the purchase.

NGI Rental (search) filed the $2 million lawsuit Friday against Randall Dee Collins (search) and his wife, as well as the real estate company that arranged their new home purchase.

Randall Collins, 39, was convicted of molesting young girls and is listed on the Arkansas Crime Information Center (search) Web site. According to the lawsuit, his wife hired a real estate company to sell her old home, saying she had married a sex offender and that her home was too close to a school.

A day after the couple bought a home in a new subdivision, the police department distributed fliers detailing Collins' case.

The lawsuit claims residents indicated they would move if Collins did not leave the neighborhood — and that sales came to a standstill because the developer was required to tell potential buyers about Collins.

The lawsuit also alleged Collins called the developer and offered to move for $250,000, "or he would stay there and kill their subdivision."

A message left on a phone listed to a Randall Collins was not immediately returned Saturday.

Springdale is about 180 miles northwest of Little Rock.