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Real estate commission antitrust settlements face legal objections
Apr 15, 2024 2:22 PM

April 15 (Reuters) - One of the country's largest

residential homebuilders has asked a U.S. judge not to approve

$208 million in settlements resolving claims that major home

brokerages conspired to keep real estate commissions

artificially high.

Atlanta-based homebuilder PulteGroup ( PHM ) in a filing on

Friday questioned the adequacy of the proposed deals, which

would resolve antitrust claims against brokerages RE/MAX, Keller

Williams and Anywhere pending in Missouri federal court.

The brokerages are accused of unlawfully coercing homeowners

into paying a commission to buyers' agents in order to list

their homes for sale. The commission, which is shared between

the buyer's and seller's agents, can run 5% to 6% of a home's

sale price.

RE/MAX, Anywhere and Keller Williams denied any wrongdoing

in agreeing to settle. They either declined to comment on the

objections or had no immediate comment.

Michael Ketchmark, an attorney for the plaintiffs, said on

Monday that they were "confident in the agreement that was

reached and we look forward to presenting it to the court."

A judge on May 9 will weigh whether to grant final approval.

In its objection, PulteGroup ( PHM ) said the settlements did not

provide enough information - including how much the company

might receive in compensation - for it to evaluate whether it

should pursue its own separate lawsuit.

Home sellers in Pittsburgh and in South Carolina also filed

objections, questioning the scope of the settlements and whether

they would block their separate lawsuits. Attorneys for home

buyers in other pending litigation also said they had filed an

objection.

The lawyers who secured the settlements separately won a

$1.8 billion jury trial in October in a related Missouri federal

court lawsuit accusing brokerages of conspiring to inflate

commissions.

In that case, Berkshire Hathaway ( BRK/A ) unit HomeServices

is the sole remaining defendant. If the verdict stands, the

company will be on the hook to pay $4.7 billion, which accounts

for the tripling of damages under antitrust law. It has denied

wrongdoing.

The U.S. Supreme Court on Monday turned down a petition from

HomeServices that challenged an order that allowed the case to

proceed as a class action.

The settlements with Keller Williams, RE/MAX and Anywhere

preceded a related proposed $418 million settlement and changes

to commission standards that the National Association of

Realtors agreed to last month.

Potential class-members will also have an opportunity to

object to that settlement.

Read more:

Home sellers say HomeServices owes $4.7 bln in real estate

commissions case

Realtors association must face US Justice Dept. probe, US

appeals court says

Home buying costs could fall in big US real estate group

settlement

Home brokerage Keller Williams to pay $70 mln in antitrust

settlement

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