Realogy Hit With Class-Action Suit Due To Securities Fraud
Realogy has been served with a class-action suit for securities fraud after the plaintiff alleges the company's investors purchased securities at inflated prices, as the brokerage failed to reveal some of its problematic practices, according to HousingWire.
"According to the suit filed Thursday by The Rosen Law Firm in the U.S. District Court of New Jersey, Realogy filed false and misleading statements with the Securities and Exchange Commission by not disclosing that it was engaging in 'anticompetitive behavior by requiring property sellers to pay a buyer’s broker an inflated fee,'" according to the report.
One current CEO and CFO were named in the suit, as well as one former CEO and CFO of the company. Realogy hit a rough spot when it's practice which requires a seller to pay the buyer's broker fee became public, sending company shares into a downward spiral.
"Defendants engaged and participated in a continuous course of conduct to conceal adverse material information about the business, operations and future prospects of Realogy," according tot he suit.
To learn more about the latest class-action suit against Realogy, click on the image above.
