New York: The Financial Industry Regulatory Authority (FINRA), a prominent Wall Street watchdog, has launched an investigation into trading activities surrounding Douglas Elliman Inc., following a failed takeover bid by Anywhere Real Estate. The probe, currently in its early stages, is focused on whether any individuals had access to non-public information prior to the public announcement of the bid in late May 2025.
According to letters reviewed by Reuters and sources familiar with the matter, FINRA requested Douglas Elliman provide detailed internal records, including board minutes, a list of individuals aware of the bid before it became public, communications with advisors, and the company’s internal policies regarding share trading. The regulator emphasized that this review is routine and does not indicate that any violations have been determined.
The scrutiny comes in the wake of a sharp 50% surge in Douglas Elliman’s share price on May 23, 2025, following media reports of the takeover attempt. Particular attention is being given to a $250,000 stock purchase by Douglas Elliman board director Patrick Bartels on May 7, the same day that negotiations with Anywhere Real Estate resumed. While the company cleared the transaction, the timing has drawn regulatory interest.
The failed acquisition talks began in March and collapsed in June when Anywhere Real Estate withdrew its offer, citing insufficient terms. Douglas Elliman, a New York-based luxury real estate brokerage founded 114 years ago, has faced additional challenges this year, including civil litigation over alleged misconduct by former agents and activist shareholder criticism regarding financial performance.
FINRA, an independent body overseen by the U.S. Securities and Exchange Commission (SEC), monitors equity markets for fraud, manipulation, and insider trading. While the investigation is routine, its outcome could have significant implications for Douglas Elliman, its board, and the broader real estate sector.