SAN DIEGO & MADISON, N.J.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Realogy Holdings Corp. (NYSE: RLGY) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between February 24, 2017 and May 22, 2019. Realogy provides real estate and relocation services.
View this information on the law firm's Shareholder Rights Blog:
Realogy Accused of Misleading Investors
According to the complaint, since February 2017, Realogy made a series of statements touting its ability to remain competitive amongst sales agents with a graduated commission model despite the competitive nature of the real estate brokerage industry. These statements also emphasized the importance of compliance with industry regulations and acknowledged that failure to comply could have adverse effects on the company. However, Realogy's misleading statements failed to disclose that it was actually in violation of industry regulations by engaging in anticompetitive behavior that required property sellers to pay the commissions of buyer's brokers at an inflated rate. The truth of Realogy and other realtors' business practices was revealed in a series of articles from March to April 2019, resulting in Realogy's stock price falling 6.1%. Then, on May 22, 2019, it became public information that the U.S. Department of Justice had opened an investigation on the antitrust practices of the real estate industry and identified Realogy as one of the companies under investigation. On this news, the stock price fell $0.71, over 9% to close at $7.13. Today the stock is trading at $5.53.
Realogy Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, firstname.lastname@example.org or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Check out Stock Watch, our free investment monitoring program for shareholders.
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