CoStar Investor Sues Over Golden Parachutes as Proxy Fight Looms

CoStar Group Inc.'s leaders gave themselves a potential $100 million golden parachute in an effort to rig their fight against hedge funds challenging the company’s “disastrous” foray into residential real estate, a lawsuit alleged Tuesday.

A retail shareholder is targeting the severance plan in Delaware’s Chancery Court, saying it reflects an attempt to manipulate an upcoming proxy battle led by Third Point LLC. That firm and another activist fund, DE Shaw Group, have assailed the data firm’s investment in the Homes.com platform, which it acquired in 2021.

CoStar shares have plunged nearly 50% since their peak that year as ...