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Redfin to pay $9 million in real estate antitrust settlement
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Redfin to pay $9 million in real estate antitrust settlement
May 7, 2024 12:01 PM

May 7 (Reuters) - Technology-powered real estate

brokerage Redfin has agreed to pay $9.2 million to

resolve a pair of nationwide class-action lawsuits accusing it

of conspiring to artificially inflate the commission paid by

U.S. home sellers.

Redfin disclosed the settlement on Monday in Missouri

federal court, where a number of other major residential

brokerages have faced related claims from home sellers that they

overpaid sales commissions by billions of dollars.

Redfin did not admit wrongdoing as part of the deal, which

requires a judge's approval. Seattle, Washington-based Redfin

and lawyers for the plaintiffs did not immediately respond to

requests for comment.

Home sellers typically must pay for the services of a

buyer's agent in order to get a home included on a "multiple

listing service," the platforms where most homes in the U.S. are

bought and sold. A commission as high as 6% of the price of a

home is then split between the buyer's and seller's agent.

The plaintiffs in the Redfin case and other lawsuits accused

the brokerages of using the listing rules to drive up

commissions as part of an antitrust conspiracy with the

industry's trade group, National Association of Realtors. In

October a group of home sellers won a nearly $1.8 billion jury

verdict in one of the sales commissions cases in Missouri.

The defendants have denied the claims but have agreed to

hundreds of millions of dollars in settlements in recent weeks.

The Chicago-based National Association of Realtors in March

agreed to pay $418 million and to implement some changes to how

Americans buy and sell homes. HomeServices of America, owned by

Warren Buffett's Berkshire Hathaway ( BRK/A ), this month said it

would pay $250 million to resolve home sellers' allegations.

U.S. District Judge Stephen Bough in Kansas City federal

court on Thursday will weigh final approval for another set of

settlements with Anywhere, RE/MAX ( RMAX ) and Keller

Williams valued collectively at $208 million.

The case is Gibson v. National Association of Realtors, U.S.

District Court for the Western District of Missouri, No.

4:23-cv-00788-SRB.

For class: Benjamin Brown of Cohen Milstein Sellers & Toll;

Brandon Boulware of Boulware Law; Steve Berman of Hagens Berman

Sobol Shapiro; Michael Ketchmark of Ketchmark and McCreight;

Michael Williams of Williams Dirks Dameron; and Marc Seltzer of

Susman Godfrey

For Redfin: Karen Dunn, William Isaacson and Eyitayo St.

Matthew-Daniel of Paul, Weiss, Rifkind, Wharton & Garrison

Read more:

Berkshire brokerage HomeServices hit with new lawsuit over

commissions

US realtor group's $418 million antitrust settlement wins

tentative approval

Real estate commission antitrust settlements face legal

objections

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