Compass stock sinks to $1.90 on NAR verdict lawsuit
Compass stock sinks to $1.90 on NAR verdict lawsuit
More brokerages sued after $1.8B award in commissions case
New class action targets Compass, Elliman, Redfin and others.
Minutes after a landmark victory over two brokerages and the National Association of Realtors, the plaintiffs’ attorney filed another class-action lawsuit against other residential brokerages, also related to buyers’ agent commissions.
The complaint, filed by attorney Michael Ketchmark, names NAR, Compass, Douglas Elliman, eXp, Redfin, Weichert Realtors, United Real Estate and Howard Hanna Real Estate Services as defendants.
Compass stock takes a hit, if you recall Compass stock started a little over $20.00 a share. Today Compass stock sunk to $1.90 a share.
Forced adherence to the law in exchange for access to the Multiple Listing Service prevents competition from “innovative or lower-priced alternatives,” according to the new suit, which says agents “steer” buyers to homes that offer higher commissions.
“Defendants’ conspiracy forces home sellers to pay a cost that, in a competitive market and were it not for defendants’ anticompetitive restraint, would be paid by the buyer,” the complaint argues. “It is well recognized in the industry that steering is used to scare homeowners into inflated or stabilized rates for fear that buyer brokers will not share homes.”
A spokesperson for eXp said in a statement, “We are committed to upholding fair and transparent practices compliant with law and we already have mechanisms and a plan in place that enables buyers and sellers to negotiate commissions.”
Elliman’s share price fell to $1.65 before rebounding to $1.78, four cents over its previous close. Redfin’s fell to $4.30 from roughly $5 at the time of the verdict, then recovered to $4.68 to finish the day down 5.7 percent. Compass stock fell to $1.90 from $2.08, before closing at $1.98, down 6.2 percent on the day.
The judge has not issued a final ruling, which is needed before a verdict is finalized. Keller Williams raised the possibility of an appeal.
Earlier in October, Redfin called on its agents to cancel their NAR memberships in areas where the local Realtor association does not control the MLS. The move followed Redfin’s decision to resign from its national board seat in June.
Updated: Boston condos for sale website 2023
Click Here to view: Google Ford Realty Inc Reviews
