From The Real Deal · Jake Indursky · · 50s
Shareholder Sues Compass Over Backchannel Deal
Shareholder claims Compass used backchannel tactics to bypass antitrust reviews for $1.6B real estate merger.
In brief
Shareholder claims Compass used backchannel tactics to bypass antitrust reviews for $1.6B real estate merger. A former Anywhere Real Estate shareholder sued Compass for allegedly using a conservative lawyer to bypass regulatory approvals in a $1.6 billion merger. Originally reported by The Real Deal.
Shareholder sues Compass
Philippe Magloire filed a lawsuit claiming Compass and Anywhere executives submitted misleading statements before the $1.6 billion acquisition closed in January.
Backchannel claims
Magloire alleges Compass used a conservative lawyer to bypass regulatory approvals despite claims of making reasonable best efforts in the offering plan.
Regulatory bypass
Compass hired Mike Davis to lobby the DOJ, skipping antitrust reviews despite concerns from Senators Warren and Wyden.
Share price drop
Compass shares fell 28% after the lawsuit, closing at $9.19 on October 7, down from $13.19 on January 9.
Here's the gist
A former Anywhere Real Estate shareholder sued Compass for allegedly using a conservative lawyer to bypass regulatory approvals in a $1.6 billion merger.
