Compass, Anywhere settle bombshell lawsuit
Company formerly known as Realogy alleged price-fixing, “predatory” poaching
A three-year legal battle between Compass and Anywhere is over.
The brokerages said in an Oct. 4 joint filing that they agreed to end the saga that started with bombshell accusations of price-fixing, “predatory” poaching and unfair business practices.
The lawsuit also included a secondary allegation that Compass CEO Robert Reffkin personally sought to engage in a price-fixing scheme with the company, which Anywhere said it declined.
Representatives for Anywhere, formerly known as Realogy, and Compass provided the same statement when asked for comment, saying the companies “have amicably resolved the litigation between our two companies and related parties.”
“The Settlement Agreement is confidential, so we are unable to comment further,” the companies said. Each side will cover their own legal costs, according to the court filings, which were first reported by Inman.
The drama started in 2019 when Anywhere hit Compass with a 68-page complaint, broadly alleging the brokerage routinely engaged in “illegal schemes to gain market share at all costs and to damage, or even eliminate, competition,” as well as “predatory recruiting and poaching.”
Anywhere also alleged Compass recruiters spread misinformation about the company’s finances, an accusation the brokerage would wield in a January 2021 countersuit.
“Many agents who have been solicited by Compass but who remain with Realogy report that Compass recruiters say that Realogy is going bankrupt and/or is going out of business,” the complaint said.
Compass denied the allegations, claiming in a motion to dismiss that Anywhere had sought to merge with them, an allegation the company denied. Eighteen months after the suit, Compass claimed in its countersuit Anywhere had “waged a war of disinformation” to impede its growth.
A judge the following year denied Compass’ motion to dismiss the suit. The move also sought arbitration given Anywhere-owned Corcoran and the brokerage are both members of the Real Estate Board of New York members, which requires disputes be resolved in mediation.