NextHome settles commissions copycat case
Terms of the deal — which still requires a judge’s OK — were not revealed. Meanwhile, the settlement fund for Sitzer, Moehrl and Gibson is nearing $1 billion.
Fast-growing franchise company NextHome has reached a deal to settle with home sellers in an early commissions copycat case.
NextHome, which has more than 600 offices nationally, agreed to terms with plaintiffs in the Gibson/Umpa class action lawsuit. Details of the settlement were not disclosed.
James Dwiggins is co-founder and CEO of NextHome. He's also a podcaster and influential voice in the industry, particularly around compensation and other legal challenges facing residential real estate.
Which case is this? The Gibson lawsuit was filed just moments after the jury reached its verdict in the landmark Sitzer/Burnett trial almost a year ago. The class includes all home sellers who used a listing agent associated with one of the seven brokerage companies named as defendants between October 2019 and October 2023. Gibson was later combined with Umpa, another lawsuit filed in the same court.
Settlement details: The filing did not say how much NextHome will pay. It did say, however, that plaintiffs intend to file documents for preliminary and final approval.
The settlement funds across the Sitzer/Burnett, Moehrl and Gibson cases is more than $980 million. As of Sept. 11, NAR and 15 brokerage companies have publicly announced settlements.
Finalized, but under appeal:
Anywhere Real Estate: $83.5 million
Keller Williams: $70 million
RE/MAX: $55 million
Briefs from those appealing are due Sept. 25.
Preliminarily approved or recently announced:
National Association of Realtors: $418 million
HomeServices of America: $250 million
Compass: $57.5 million
Real Brokerage: $9.25 million
Realty One: $5 million
HomeSmart: $4.7 million
@properties: $6.65 million
Douglas Elliman: Up to $17.75 million
Redfin: $9.25 million
Engel & Völkers: $6.9 million
United Real Estate: $3.75 million
The Keyes Company: Not immediately disclosed
NextHome: Not immediately disclosed
Final approval of the NAR and HomeServices deals — the two largest settlements, accounting for more than two-thirds of the total fund to date — is scheduled for Nov. 26.
The remaining brokerages — apart from NextHome and Keyes, which settled Sept. 3 — will have a final approval hearing on October 31; hearings for NextHome and Keyes will be determined after their agreements receive preliminary approval.