Lawsuit claims Compass downplayed regulatory risks ahead of Anywhere acquisition

Compass is facing a lawsuit filed on behalf of former Anywhere shareholders over the company’s acquisition by Compass. 

The class action suit was filed last week by shareholder rights law firm Robbins LLP on behalf of former Anywhere investors, who acquired Compass, Inc. common stock in direct exchange for Anywhere securities issued as part of the merger. 

According to the complaint, the stock offered in connection with the merger falsely claimed that both Compass and Anywhere would “use their respective reasonable best efforts to obtain authorizations and consents… from certain regulatory authorities” regarding the merger. The complaint also alleges that the companies also said that they would do “all things necessary, proper or advisable under applicable law (including any antitrust laws) to consummate and make effective the merger at the earliest practicable date,” and that Compass was in “compliance with applicable laws,” as well as “the absence of governmental investigations and the possession of and compliance with licenses and permits necessary for the conduct of business.”

The suit notes that prior to the merger closing, U.S. Senators Elizabeth Warren and Ron Wyden contacted the Department of Justice (DOJ) and the Federal Trade Commission (FTC) asking them to examine the proposed merger, claiming that it posed antitrust risks and could harm homebuyers by contributing to higher broker fees and limiting access to property listings. 

The lawsuit contends that instead of addressing these concerns, Compass instead hired Mike Davis, who the suit describes as a “lawyer, lobbyist and ally of President Trump,” in order to push the merger through without normal antitrust reviews. 

At the time, there were reports that former assistant attorney general for antitrust Gail Slater wanted to undertake an extended review of the merger to consider any potential anticompetitive impacts. However, reports claimed that Compass and its attorneys appealed to Slater’s superiors including Deputy Attorney General Todd Blanche, telling his office that any antitrust concerns could be addressed without a full-scale investigation.

In February 2026, after the close of the merger, Senator Warren, along with Rep. Becca Balint (D-Vt.) with 16 other Democrats as co-signers, sent a letter to Attorney General Pam Bondi for details about the DOJ’s antitrust review of the merger between Compass and Anywhere. 

Investors interested in being the suit’s lead plaintiff have until December 7 to contact Robbins LLP.

In an emailed statement, a Compass spokesperson told HousingWire that the “allegations are without merit.” 

“We will defend against these claims,” the spokesperson added. 

Source: www.housingwire.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.