Redfin to pay $9.25 million to settle commissions cases
The company is the 10th brokerage to agree to pay into a settlement fund, which is approaching $1 billion.
Redfin is the latest company to reach a settlement in the buyer agent commission lawsuits.
In an 8-K filing with the U.S. Securities and Exchange Commission, the company announced it will pay $9.25 million into a settlement fund within 30 days of a preliminary agreement. The deal was reached on Friday, May 3, according to the May 6 filing.
Redfin had been named as a defendant in multiple lawsuits filed on the heels of the Sitzer/Burnett verdict:
The Phillips case, filed in Georgia
The Freedlund case, filed in California
The Boykin and Whaley cases, filed in Nevada, which were consolidated under Whaley in March
The Batton 2 case, which was filed in Illinois by a homebuyer, not a seller
Redfin got pulled into the class action litigation despite publicly cutting ties with the National Association of Realtors in October and offering lower commission rates. That was reflected in a statement Redfin sent to Real Estate News:
"As the only U.S. brokerage that has saved consumers more than $1.5 billion in fees, Redfin never belonged in this litigation, and we're glad to have settled it. We always have been, and always will be, advocates for transparency and saving consumers money, directly selling homes to buyers to bring down fees, and broadly publishing commission data so consumers understand how much they are paying."
Settlement tally: With Redfin settling, the pool of money in the commissions cases is now up to more than $960 million. Here are the brokerages and organizations that have announced settlements as of May 6:
National Association of Realtors: $418 million
HomeServices of America: $250 million
Anywhere Real Estate: $83.5 million
RE/MAX: $55 million
Keller Williams: $70 million
Compass: $57.5 million
Real Brokerage: $9.25 million
Realty ONE, @properties: Damage total not announced yet
Douglas Elliman: Up to $17.75 million
Redfin: $9.25 million