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