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
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Home buying costs could fall in big US real estate group
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Home brokerage Keller Williams to pay $70 mln in antitrust
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