Compass Sued for fraud, alleged by CA Real Estate Agents

Compass is once again facing allegations of fraud by former employees.

A lawsuit filed by two agents in Northern California claims that Compass cheated them out of millions of dollars in sales and commissions.

 The lawsuit also claims that the New York-based brokerage reneged on its promises to give agents shares in the company. The plaintiffs are asking for class-action status for their suit.

The complaint filed by Lisa and Todd Sheppard, a sales team from Sonoma County. The couple claims that Compass urged them to join in 2018 by offering a signing reward, marketing budget, and office place. But the lawsuit claims that rather, the brokerage decreased expenses from their commission on each sale.

Compass also allegedly deducted from the couple’s commission if the team made less than the standard 5 percent rate for each home sale. That rates usually split 50/50 between the customers and dealers.

The Sheppards further alleges that Compass cheated them on the terms of the stock shares. They claim that they received a “ lower level of stock” as faced to the company’s shares of common stock.

It’s the latest lawsuit filed against Compass, the tech-focused brokerage that just went public last month.

In January, former Compass agent J. Gregory Maffei filed a lawsuit in California alleging Compass used wrong, illegal, and false business manners” meant to gain market share.

Compass has allowed agents to invest commission payments into company stock.

But Maffei alleged that the model is nothing more than an “illegal scheme or a get-rich-quick scheme,” the complaint read. “Compass’ agents in pressure to give up hard-earned money to invest in Compass.”

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