Law Firm Hagens Berman Seeks Plaintiffs for Class Action Against Compass Over MRED Dispute
Law Firm Hagens Berman Seeks Plaintiffs for Class Action Against Compass Over MRED Dispute
Class action law firm Hagens Berman is looking for plaintiffs to join a lawsuit against Compass, Inc. related to the brokerage’s dispute with Midwest listing service MRED, according to a report by HousingWire.
The firm’s effort centers on Compass’s practice of pre-marketing listings before they reach the MLS. Hagens Berman cites claims that Compass holds a 98% market share in the relevant market for its private listing network, and points to Compass’s own research indicating that homes marketed through its pre-MLS channels ultimately sold for 4.6% higher prices.
The dispute touches on a broader industry debate over private listing inventory and whether keeping homes off the MLS advantages large brokerages at the expense of consumers and competing agents. MRED, the Chicago-area multiple listing service, has been a focal point in ongoing clashes over listing distribution rules.
Compass operates an end-to-end technology platform for residential real estate in the United States, offering cloud-based software for customer relationship management, marketing, and related brokerage workflows. The company’s shares traded at $10.09 in recent trading, down 3.77% from a prior close of $10.48, giving the company a market capitalization of roughly $8.04 billion.
It remains to be seen whether the class action will move forward and how many plaintiffs Hagens Berman can recruit. Compass has previously defended its pre-marketing strategy, arguing it benefits sellers through broader exposure to potential buyers before formal MLS listing.
What to watch
- Whether Hagens Berman formally files the class action and in which jurisdiction.
- Any response or legal filings from Compass regarding the potential suit.
- Developments in MRED’s listing policies and other MLS rules affecting pre-marketing practices.
- Compass’s upcoming quarterly earnings report and any commentary on its private listings strategy.
Source: original release