CoStar Group, Inc. has amended its Executive Severance Plan to remove a specific clause from the definition of a "Change in Control." The company stated this action was taken to avoid the cost and distraction of a potential lawsuit related to threatened proxy contests from activist investors Third Point LLC and D. E. Shaw & Co., L.P.
Key Details
- Agreement Amended: The CoStar Group Inc. Executive Severance Plan was amended on February 13, 2026.
- Specific Change: The amendment removed the "director clause," which related to changes in the composition of the Board of Directors, from the definition of a "Change in Control."
- Stated Rationale: The company cited the need to avoid an "opportunistic lawsuit" and "misleading narratives" arising from threatened proxy contests by activist shareholders Third Point LLC and D. E. Shaw & Co., L.P.