WASHINGTON, March 25 (Reuters) - Major U.S. home real
estate brokerages Compass, eXp, Redfin and two
others must face a lawsuit by buyers accusing them of conspiring
to fix commissions and inflate home prices, a federal judge
ruled on Tuesday.
In her order, U.S. District Judge LaShonda Hunt in Chicago
allowed most of the claims brought by 32 homebuyers to proceed
against the brokerages, which also include Weichert Realtors,
and United Real Estate Group.
The plaintiffs, seeking to represent at least thousands of home
buyers in a class action, contend that sellers are inflating
home prices to offset the cost of commissions that the
defendants require buyers to pay their agents, driving up the
overall cost of buying a home.
Redfin in a statement said its goal is to save consumers in
real estate fees and "there is a complete disconnect between our
business model and the plaintiffs' senseless claims in this
case."
Compass, eXp, Weichert and United Real Estate did not
immediately respond to requests for comment. The companies have
denied any wrongdoing.
Lead attorneys for the buyers also did not immediately
respond to requests for comment.
Hunt found the plaintiffs had plausibly alleged the
companies were conspiring on commission requirements and were
not independently following industry rules.
She also dismissed or trimmed some antitrust claims under
the laws of Florida, Missouri, Tennessee and other states.
In February, U.S. real estate brokerage Keller Williams
agreed to pay $20 million to settle claims against it in the
lawsuit. Keller Williams, which markets itself as the largest
real estate franchise by agent count, also said it would
cooperate with the buyers.
The National Association of Realtors and some major brokerages
have been hit with separate antitrust lawsuits by home sellers
claiming damages in connection with commission fees. Many of
those cases have resulted in settlements totaling hundreds of
millions of dollars. The trade association denied any wrongdoing
in that settlement.
The case is Mya Batton et al v. Compass et al, U.S. District
Court for the Northern District of Illinois, No. 1:23-cv-15618.
For plaintiffs: George Zelcs and Randall Ewing Jr of Korein
Tillery, and Vincent Briganti of Lowey Dannenberg
For Compass: Chahira Solh and Sima Namiri-Kalantari of
Crowell & Moring
For eXp: James Morsch and Francis Riley III of Saul Ewing
For Redfin: Gerald Stein and Robert Maguire of Davis Wright
Tremaine
For Weichert: Dylan Ballard and Adam Hudes of Vinson &
Elkins
For United Real Estate: James Lawrence and Lindsay Sklar
Johnson of Bryan Cave Leighton Paisner
Read more:
Compass dismisses lawsuit against Zillow ( ZG ) after 'Zillow ( ZG ) ban'
ends
Home brokerage Keller Williams to settle homebuyer class
action for $20 million