A new lawsuit claims the real estate giant’s practices led to investors paying inflated prices for stocks
Real estate giant Realogy has been accused of securities fraud in a new federal lawsuit, just days after the conglomerate sued competitor Compass over “illicit” business practices.
The Rosen Law Firm filed the suit against Realogy, its former CEO Richard Smith, current CEO Ryan Schneider, former CFO Anthony Hull and interim CEO Timothy Gustavson, according to a report by The Real Deal. The lawsuit alleges that Realogy engaged in “anticompetitive” business practices – specifically, making home sellers pay inflated buyer broker commissions.
That, in turn, led to investors purchasing Realogy stock at inflated prices, the lawsuit alleged. The suit also claimed that Realogy intentionally hid negative information from its investors.
“Defendants engaged and participated in a continuous course of conduct to conceal adverse material information about the business, operations and future prospects of Realogy,” the lawsuit said.
The suit also said that Realogy’s actions could result in a Justice Department probe into its brokers’ commissions, The Real Deal reported.
“Realogy believes the allegations in the complaint are without merit, and we intend to vigorously defend this action,” a Realogy spokesperson told Inman.
Realogy filed its own lawsuit against Compass last week, alleging price-fixing and collusion, The Real Deal reported.
