Zillow says there is no evidence of 'irreparable harm' to Compass

"The record is clear that Compass cannot sustain its burden on the [preliminary injunction] motion for several reasons, the letter states. First, Compass presents no actual, non-speculative evidence of irreparable harm. Zillow also states that while Compass has claimed that Zillow's listing access standards policy prevents it from implementing its three-phased marketing strategy (3PM) if a seller also wants their home on Zillow, testimony shows otherwise."

"Nearly every Compass witness admitted that Compass continues to implement 3PM in some form, the letter states. Likewise, when asked about impact of the Standards to 3PM during Compass's July 30 investor call, Compass's CEO Robert Reffkin said Compass private exclusives have stayed at basically the same level throughout the last number of months.' The letter also cites testimony from Soham Bohnsle, Compass's head of investor relations, in which he states that since Zillow began enforcing the policy at the end of June,"

"This is contrary to Compass's claim that investors were confused and concerned about the policy. Zillow also highlights testimony from Compass's president of brokerage operations Nada Navab, in which Navab testifies that Zillow's policy is not a meaningful driver of agent retention risk, also contrary to previous claims made by the brokerage. On this record, Compass falls woefully short of showing irreparable harm to itself due to Zillow's Standards, the letter states."

Compass filed a motion for a preliminary injunction claiming irreparable harm from Zillow's enforcement of its listing access standards. Expedited discovery concluded and Zillow asserts no hearing is necessary because Compass lacks non-speculative evidence of irreparable harm. Testimony shows Compass continues to implement its three-phased marketing strategy (3PM) in some form. Compass CEO Robert Reffkin said private exclusives have remained at similar levels. Soham Bohnsle reported a roughly 40% stock increase since enforcement began, signaling positive investor sentiment. Nada Navab testified that the policy is not a meaningful driver of agent retention risk. Zillow contends Compass cannot meet its injunction burden.

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