Lawsuit claims Compass downplayed regulatory risks ahead of Anywhere acquisition

Compass is facing a lawsuit filed on behalf of former Anywhere shareholders over the company’s acquisition by Compass. The class action suit was filed last week by shareholder rights law firm Robbins LLP on behalf of former Anywhere investors, who acquired Compass, Inc. common stock in direct exchange for Anywhere securities issued as part of the merger. According to the complaint, the stock offered in connection with the merger falsely claimed that both Compass and Anywhere would “use their respective reasonable best efforts to obtain authorizations and consents… from certain regulatory authorities” regarding the merger. The complaint also alleges that the companies also said that they would do “all things necessary, proper or advisable under applicable law (including any antitrust laws) to consummate and make effective the merger at the earliest practicable date,” and that Compass was in “compliance with applicable laws,” as well as “the absence of governmental investigations and the possession of and compliance with licenses and permits necessary for the conduct of business.” The suit notes that prior to the merger closing, U.S. Senators Elizabeth Warren and Ron Wyden contacted ...