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Even though a judge gave final approval to a key committee settlement on Tuesday, filings in other lawsuits continue, a stark reminder that the National Association of Realtors’ approval is not final. .
On the same day that Judge Stephen R. Baugh gave final approval to a settlement with the National Association of Realtors, HomeServices of America and dozens of other industry players, a new class-action lawsuit known as Baton II in Illinois was filed. This proposal will pave the way. Additional plaintiffs will be included as the case progresses.
The plaintiffs filed an amended complaint in the matter on Tuesday. Although no amendments were made to their claims or claims, 22 new homebuyer plaintiffs from 19 states were added to the lawsuit, bringing the total to 32.
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Tuesday’s final settlement approval, which will likely be appealed, resolves antitrust claims by home sellers known as the Sitzer case. Mr. Barnett, Mr. Mehle and similar cases have filed lawsuits across the country alleging that NAR, HomeServices, and other major real estate companies engaged in an illegal conspiracy to raise brokerage fees.
Other settlements from companies including Keller Williams, RE/MAX, Compass and Anywhere have already been approved.
However, settlements of lawsuits brought by home sellers do not protect them from lawsuits brought by homebuyers who are not sellers. There are other lawsuits filed by homebuyers who have made claims similar to those featured in Sitzer | The second amended complaint filed against Mr. Barnett and Mr. Button meant that any celebration by industry players was short-lived.
“For decades, homebuyers across the country have unknowingly paid too much and received too much for services provided by real estate agents who are members of the National Association of Realtors. Too little,” the Baton II plaintiffs wrote in their initial complaint. On November 2, 2023.
“As a result of the defendants’ illegal and anti-competitive conduct, homebuyers in the United States are forced to pay high fees for brokerage services that are falsely claimed to be free, inflate the prices of the homes they purchase, and receive lower-quality brokerage services. ,” the complaint states.
The lawsuit targets Compass, eXp, Redfin, Weichert, and United Real Estate.
Tuesday’s amended complaint was nearly identical to one previously filed in the case. The main changes include the addition of new plaintiffs in Colorado, North Carolina, Illinois, Iowa, Utah, New Hampshire, California, Missouri, Minnesota, Wisconsin, New Mexico, Arizona, Virginia, South Carolina, Washington DC, Michigan, Oregon, and Connecticut. That’s what happened. And New York.
It was already clear to NAR and industry giants that the legal issues were not resolved by this settlement.
Two days before final approval of the Sitzer Settlement, the Department of Justice filed a statement of interest confirming that it would maintain an open and active investigation into NAR policies.
Justice Department lawyers also take issue with a core business practice change outlined in the settlement, a requirement that buyers sign a buyer representation agreement with a broker before viewing a home. said. And they told the court that the settlement would not protect NAR or the other settling defendants from other antitrust lawsuits in the future.
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Meanwhile, real estate companies not covered by the NAR settlement are still working on their legal strategies.
Last month, eXp reached a settlement agreement in the lawsuit known as Hooper, pledging to pay $34 million.
The settlement hit a roadblock when defendants in another case, known as Gibson, objected, claiming that eXp had negotiated a “sweetheart deal” by opting to sue. EXp faced a roadblock when Judge Stephen Baugh agreed and refused to suspend the Gibson case.
“The court finds that plaintiffs raise genuine issues of potentially questionable conduct with respect to eXp’s Hooper settlement and that further discovery is required in this case,” Baugh said in the filing. I mentioned it inside.
On Tuesday, eXp called the ruling “premature” and said there were errors in Bo’s ruling. The company announced that it will release documents outlining the settlement agreement in the coming weeks.
“In connection with that claim, the parties intend to file a lengthy settlement agreement in the coming weeks detailing the terms of their settlement with the Hooper Settlement Class,” eXp said in its filing.
Mr. Weichert also reached a settlement agreement in the Hooper case and asked Mr. Baugh to suspend the case pending final approval. Buch has not yet ruled on the request.
In a separate filing, also filed Tuesday, Illinois-based brokerage firm Baird & Warner said it had reached a settlement agreement in the Gibson case. Baird & Warner traded revenue of $6.27 billion in 2022 and was therefore not subject to the NAR settlement. Details of the proposed settlement were not included in the filing.
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