The verdict could upend decades-old practices that have allowed real estate agents to boost commissions by forcing sellers to pay commissions to buyers' real estate brokers.
Representatives of Compass and Douglas Elliman declined to comment.
BTIG analyst Soham Bhonsle in an investor note said the fact that Douglas Elliman, Redfin, Compass and eXp were being sued by the same lawyers was a negative for their stocks.
Zillow (ZG.O) shares initially fell 0.33% after brokerage Jefferies cut its price target, citing the impact of Tuesday's verdict.
While Zillow is not a defendant in either lawsuit, Jefferies said Tuesday's verdict "increases the chances of a ban on commission sharing and Zillow having to pivot the business model."
Persons:
Douglas, Mike Segar, Douglas Elliman, Berkshire Hathaway's, eXp, Glenn Kelman, Soham Bhonsle, Jefferies, Zillow, HomeServices, Chibuike Oguh, Jonathan Stempel, Michelle Price, Bill Berkrot, Matthew Lewis
Organizations:
REUTERS, World Holdings, National Association of Realtors, Compass, NAR, Thomson
Locations:
Manhattan's, New York City , New York, U.S, Kansas City , Missouri, Berkshire, America, Western Missouri, Missouri , Kansas, Illinois, New York