5 brokerage settlements receive preliminary approval
Firms that settled in the Gibson/Umpa case in March and April will have until later this year to finalize the agreements, but more than 20 defendants remain.
The judge in the Gibson/Umpa case has granted preliminary approval for five settlements and plans to finalize the agreements this fall.
U.S. District Court Judge Stephen Bough signed off on the settlements for Compass, Real Brokerage, Realty ONE Group, At World Properties and Douglas Elliman. Compass announced its settlement on March 22, while the other firms settled in April.
HomeServices of America also settled in April, but the agreement has not yet received preliminary approval. Court documents indicate that additional paperwork needs to be submitted before the judge can take action.
The Gibson and Umpa cases were both filed in Missouri last year and were consolidated into one case on April 23.
When will the settlements be finalized? The parties involved will contact the court to schedule a final approval hearing, which must take place within the next seven months. Judge Bough said the hearing will be no later than Nov. 26, 2024 — the date of NAR's final approval hearing for its proposed settlement in the Sitzer/Burnett case, which Bough is also overseeing.
What the judge had to say: In reviewing the settlements, Bough said in court documents that they were "fair, reasonable and adequate." He noted that the agreements were negotiated at arm's length, meaning the parties had no prior relationship and entered into the agreements freely.
Who is in the settlement class? Most of the class consists of home sellers who used one of the named brokerages to list a home on an MLS in the U.S. between the end of October 2018 and the date of the class notice, though the dates vary somewhat depending on the circumstances of each defendant.
Which defendants have not settled in Gibson/Umpa? According to the court case summary at the end of April, more than 20 companies have not yet settled. They will have until June 18 to pay the opt-in amount negotiated by NAR or reach their own agreements with the plaintiffs.
These are the remaining defendants:
eXp World Holdings
Redfin
Weichert Realtors
United Real Estate
Berkshire Hathaway Energy
Long & Foster Companies
Hanna Holdings, which was added as a defendant after the plaintiffs previously dismissed Howard Hanna Real Estate Services from the case.
HomeSmart
Engle & Volkers
NextHome
EXIT Realty
Windermere
Lyon Real Estate
William Raveis Real Estate
John L. Scott Real Estate
The Keyes Company
Illustrated Properties LLC
Parks Pilkerton Village Real Estate
Crye-Leike Real Estate Services
Baird & Warner Real Estate
LoKation Real Estate LLC