Stockholders sue Anywhere over Compass mergerdisclosures

"In addition to these lawsuits, Compass and Anywhere have also received demand letters from other stockholders, who had similar concerns about the disclosures. Additionally, an analysis of RealTrends Verified data published by The Capitol Forum in mid-December found that the proposed acquisition could create market share concentrations well above presumptively illegal thresholds, in at least a dozen states. This includes more than 80% market share in both Newport Beach, California and Manhattan."

"The companies are also facing scrutiny from federal lawmakers. In mid-December, Sens. Elizabeth Warren (D-Mass.) and Ron Wyden (D-Ore.) sent a letter to antitrust officials at the Department of Justice (DOJ) and Federal Trade Commission (FTC) asking them to consider blocking the proposed acquisition. In the letter, they argue that the acquisition could harm homebuyers by contributing to higher broker fees and limiting access to property listings."

"The plaintiffs are demanding a variety of actions from Anywhere and the court, including that the firm make corrective disclosures, an injunction to stop the merger unless they are provided with additional information and potential damages if the acquisition proceeds. In addition to these lawsuits, Compass and Anywhere have also received demand letters from other stockholders, who had similar concerns about the disclosures."

Plaintiffs McDaniels, Marino and Drulias allege Anywhere made insufficient financial disclosures to its stockholders. They assert the joint proxy statement filed by Anywhere and Compass contained misleading or incomplete information about the merger. Plaintiffs demand corrective disclosures, an injunction to stop the merger unless more information is provided, and potential damages if the acquisition proceeds. Compass and Anywhere received demand letters from other stockholders with similar concerns. An analysis of RealTrends Verified data found the acquisition could create market concentrations above illegal thresholds, including over 80% in Newport Beach and Manhattan. Senators Warren and Wyden asked DOJ and FTC to consider blocking the deal due to risks of higher broker fees and limited listing access.

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