Court Grants Preliminary Approval Of Settlements With Firms In Gibson

The court has granted preliminary approval of settlements in the Gibson commission lawsuit, offered by Compass, The Real Brokerage, Realty One Group, At World Properties, and Douglas Elliman. The settlements are subject to final approval at a hearing scheduled for November 26, 2024. Compass, Real, Douglas Elliman, Realty One Group, and At World Properties have all proposed settlement amounts to resolve the lawsuit, which also includes changes to their business practices. Some firms have already deposited funds into settlement accounts as part of the preliminary approval process. The lawsuit alleges violations of the Sherman Antitrust Act relating to broker commission practices. Several other brokerages named in the lawsuit have yet to propose settlements. The U.S. Department of Justice may also reopen its investigation into the National Association of Realtors’ cooperative compensation rule, potentially affecting the settlements.

The court has granted preliminary approval of settlements in the Gibson commission lawsuit for several major firms, including Compass, The Real Brokerage, Realty One Group, At World Properties, and Douglas Elliman. The court found the proposed settlements fair and reasonable, positioning the firms closer to finalizing the settlements. If approved at a final hearing, Compass will pay $57.5 million, Real will pay $9.25 million, Douglas Elliman up to $17.75 million, and Realty One Group and At World Properties undisclosed amounts. The firms must also make significant changes to their business practices, especially regarding buyer-broker compensation. The preliminary approval requires depositing settlement funds within the next 30 business days. The lawsuit alleges violations of the Sherman Antitrust Act related to broker commissions. Other firms named in the lawsuit have yet to propose settlements. The U.S. Department of Justice may also reopen its investigation into the National Association of Realtors’ cooperative compensation rule.

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