In a legal action that could make go very angry thousands of home sellers in the United States, proposed clas action settlements totaling more than $730 million have been reached with several real estate companies, including Compass, Real Brokerage, Realty ONE, @Properties, Douglas Elliman, Redfin, Engel & Völkers, HomeSmart and United Real Estate.
These agreements are derived from a lawsuit known as Gibson v. National Association of Realtors, which alleges an anticompetitive agreement that inflated commissions paid by home sellers to real estate agents, in alleged violation of antitrust laws.
The defendants have agreed to establish a Settlement Fund that currently exceeds $110 million. This fund will be distributed among Settlement Class Members, those who sold a home during the Eligible Date Range, listed it on a multiple listing service (“MLS”) anywhere in the United States, and paid a commission to a real estate agent in connection with the sale. Specific details on the eligible date range and how to file a claim are available at www.RealEstateCommissionLitigation.com.
In addition to the financial payments, the defendants have agreed to implement changes in their business practices and cooperate in the investigation of the Settlement Agreements. This includes reviewing and possibly modifying practices related to pricing and transparency in commission fees.
Those interested in receiving a payment from the settlement must have submitted a Claim Form by May 9, 2025. The form can be completed online at the aforementioned website or sent by physical mail to the specified address.
Who’s Affected in the Class Action Lawsuit?
Affected sellers have the option to object to the terms of the settlement or opt out of it by October 3, 2024. Opting out means they will not receive any payment, but will retain the right to bring individual legal action against the defendants. On the other hand, those who decide to do nothing will not receive any compensation and will give up the possibility of suing in the future.
Here’s the Final Date for This Settlement
A court hearing to consider Final Approval of the Settlements is scheduled for October 31, 2024. At this hearing, it will be determined whether the terms of the settlement are fair and appropriate, and fees and costs will be awarded to attorneys representing the class members. Additional details on how to participate in the hearing and the roles of class counsel are available on the litigation website.
This case continues to be closely watched by the legal community and by those who could be affected by the results of the proposed settlements. For more detailed information about the terms of the settlement, including how to file a claim, object to the terms, or opt out of the class action, interested parties are invited to visit www.RealEstateCommissionLitigation.com.
