Key facts
- An antitrust lawsuit against Compass International Holdings has added Charles Lieberman as the lead plaintiff.
- The lawsuit alleges Compass created a monopoly by pulling rental listings from Zillow's StreetEasy and using the REBNY RSL "participant only" designation.
- Plaintiffs claim these actions reduced consumer choice and increased rents and brokerage fees in the New York City metro area.
- The amended complaint seeks class action status for renters and brokers' fees paid to Compass.
- Compass faces separate antitrust claims from Zillow and scrutiny from the House Judiciary Committee and the New York attorney general's office.
An antitrust lawsuit against Compass International Holdings has gained a new lead plaintiff, Charles Lieberman, just days after its initial filing. The amended complaint alleges that Compass has engaged in monopolistic practices by removing rental listings from Zillow-owned StreetEasy and utilizing the "participant only" designation on the Real Estate Board of New York’s (REBNY) Residential Listing Service (RSL). This strategy, according to the plaintiffs, has reduced consumer choice and inflated rents and brokerage fees in the New York City metro area.
Lieberman's claims detail how he was allegedly forced to pay higher rent and a broker's fee due to a "dearth in supply" caused by Compass's actions. The lawsuit seeks class action status for renters who paid higher prices and for those who paid broker fees directly or indirectly to Compass. The suit also demands a jury trial, damages, and injunctive relief.
A Compass spokesperson previously described the listing removal as a "common marketing strategy among top agents" that provides exposure to all agents within REBNY's RLS, while acknowledging it temporarily removes listings from the "World Wide Web." The spokesperson also stated that portals are increasingly controlling how sellers market homes in ways that protect their business models.
This lawsuit is one of several legal and regulatory challenges facing Compass. The company is also subject to an antitrust lawsuit filed by Zillow, scrutiny from the House Judiciary Committee over its partnership with Midwest Real Estate Data (MRED), and an alleged probe by the New York attorney general's office into its acquisition of Anywhere.