Realogy CEO Ryan Schneider and Compass CEO Robert Reffkin
Compass was slammed with an explosive and wide-ranging lawsuit Wednesday accusing the SoftBank-backed brokerage of price-fixing and collusion, theft of confidential information and unfair business practices.
The 68-page document was filed by Realogy, the country’s largest brokerage conglomerate. In the opening paragraph, Realogy alleges Compass’ “unfair business practices and illegal schemes to gain market share at all costs and to damage, or even eliminate, competition,” the suit said.
The complaint goes on to detail Compass’ modus operandi for entering new markets by targeting top agents and firms, and coaching new recruits on how to navigate non-competes. It also accuses Compass CEO Robert Reffkin of personally soliciting Realogy to enter into an illegal price-fixing agreement “where the two companies would agree to
limit agent compensation and ‘compete on brand,’ but not on price.” Realogy said it declined.
In a statement, Compass accused its rivals of using the courts to stifle competition.
“At Compass we focus on providing the best possible experience for our employees, agents and their clients,” the statement said. “Instead of building a better future for the real estate industry, our competitors are using the court system to stifle competition, but these efforts have been unsuccessful. Compass will continue on its mission to meaningfully improve the real estate industry and help everyone find their place in the world.”
Since its founding in 2012, Compass has been sued by several competitors nationwide. In New York, it settled suits with Corcoran and Citi Habitats. Most recently, Zillow Group sued Compass alleging the firm hired three tech staffers in violation of their non-competes.