12:31 PM EDT, 10/07/2024 (MT Newswires) -- EXp World Holdings ( EXPI ) said Monday it reached a tentative agreement last week to settle litigation in several jurisdictions with home sellers and buyers who challenged the traditional commission they shared in real estate transactions.

Under terms adopted Oct. 1, eXp World ( EXPI ) will pay $34 million to the plaintiffs and agreed to make certain changes in its business practices, but it did not admit any liability, according to a regulatory filing. The settlement will be paid in two installments, 50% within 30 days after the settlement is approved by the court, and 50% one year after the settlement.

The agreement follows a similar settlement announced in March by the National Realtors Association that effectively ended the traditional 6% agent commission.

EXp World ( EXPI ) said Monday it expects to pay the settlement using available cash. It also continues to deny the material allegations of the complaints.

The real estate brokerage's shares were down nearly 1% intraday.

Price: 13.35, Change: -0.11, Percent Change: -0.82