HomeServices faced potential liability for the remaining $4.7 billion in damages from a jury verdict in the Sitzer | Burnett case, where plaintiffs were initially awarded $5.3 billion.
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As part of a settlement to resolve ongoing lawsuits, HomeServices of America, one of the largest real estate brokerages in the country, agreed to pay $250 million and implement changes in its business practices. This settlement marks the resolution of the Sitzer | Burnett class action lawsuit for HomeServices, following settlements by Anywhere Real Estate, RE/MAX, Keller Williams, and the National Association of Realtors in previous months.
The proposed settlement, which still requires court approval, signifies a shift for HomeServices, which had previously planned to continue fighting the lawsuits. The settlement is aimed at protecting the firm’s agents, employees, and franchisees from related legal challenges.
The settlement with HomeServices was expected by those in the industry, and it follows a similar trend of settlements with other real estate defendants. The agreement with NAR, for example, opened the way for remaining brokerages to settle and avoid further legal battles.
The potential damages faced by HomeServices were substantial, and the $250 million settlement amount adds to the total damages from the Sitzer | Burnett lawsuit. This settlement allows HomeServices to focus on delivering value in the real estate market without the cloud of ongoing litigation.
Overall, these settlements aim to return funds to home sellers and empower them in the real estate transaction process. Confidence in the process is seen as crucial for all parties involved.
HomeServices of America, one of the largest real estate brokerages in the nation, has agreed to pay $250 million and make changes to its business practices to settle lawsuits that threatened the firm. The settlement is part of the Sitzer | Burnett class action lawsuit, which accused HomeServices of participating in an illegal conspiracy to keep commissions high. This settlement marks the final major brokerage to reach an agreement in the lawsuit, following settlements by Anywhere Real Estate, RE/MAX, Keller Williams, and the National Association of Realtors in previous months.
The settlement agreement aims to protect HomeServices’ agents, employees, and franchisees, totaling nearly 70,000 agents, 51 brands, and over 300 franchisees and licensees. The settlement is a significant departure for HomeServices, as it had previously vowed to continue fighting the lawsuits. However, the settlement was expected by industry insiders, as the lead plaintiffs’ attorney in the case had been in ongoing settlement discussions with real estate defendants.
The stakes were high for HomeServices, as they potentially faced $4.7 billion in damages from the Oct. 31 jury verdict in the Sitzer | Burnett case, where plaintiffs were awarded $5.3 billion. The settlement amount of $250 million brings the total damages from the lawsuit to $876.5 million, including amounts paid by other defendants such as NAR, Keller Williams, RE/MAX, and Anywhere.
Compass, another major brokerage named in different lawsuits, reached its own settlement agreement last month, agreeing to pay $57.5 million. These settlements aim to return hundreds of millions of dollars to home sellers and work towards empowering both sellers and buyers in the real estate negotiation process. Confidence in the real estate process is crucial, as it is one of the most significant transactions in a person’s lifetime.
Overall, the settlement by HomeServices of America represents a significant shift in their approach to the Sitzer | Burnett lawsuit and aims to protect their agents, employees, and franchisees from ongoing legal battles. The agreement comes after settlements by other major brokerages and is part of a larger effort to address concerns about commission practices in the real estate industry.
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