Key Details:
- One year after the Sitzer/Burnett verdict, Judge Stephen R. Bough approved $119 in settlements for nine brokerages in the Gibson/Umpa commission lawsuit.
- NAR and HomeServices of America continue to await final approval for their settlement agreements, currently slated for November 26.
Exactly one year after the Sitzer/Burnett verdict, U.S. District Court Judge Stephen R. Bough granted final approval to settlements totaling over $110 million in the Gibson/Umpa commissions case.
Nine of the country’s largest brokerages — including Compass, Redfin, and The Real Brokerage — can now move forward, resolving their roles in the consolidated lawsuit. The Gibson suit, initially filed by attorney Michael Ketchmark, was filed directly after the Sitzer/Burnett verdict last year on Halloween.
Judge Bough’s ruling provides a degree of closure for these firms. However, the industry remains watchful as the National Association of Realtors (NAR) and HomeServices of America approach their own final settlement hearings, currently scheduled for November 26, 2024. It is yet to be determined if the court will take into account any settlement objections filed, including one from law professor Tanya Monestier.
Settlement Breakdown and Brokerages Involved
The approved settlement amounts reflect negotiation deals that took place in March and April, with Compass leading with a $57.5 million settlement. Nearly one-third of the settlement—approximately $36.8 million—will go to the plaintiffs’ attorneys.
Here’s a breakdown of the finalized settlements:
- Compass: $57.5 million
- The Real Brokerage: $9.25 million
- At World Properties (@properties): $6.5 million
- Douglas Elliman: $7.75 million (plus up to an additional $10 million contingent)
- Redfin: $9.25 million
- Engel & Völkers: $6.9 million
- Realty ONE Group: $5 million
- HomeSmart Holdings: $4.7 million
- United Real Estate: $3.75 million
These settlements contribute to a settlement fund that has surpassed $1 billion.
For now, Compass, Redfin and the other brokerages above can breathe a little easier as they move on from seller-side commission cases. However, all eyes remain on the November 26 hearing, which could bring further clarity—or upheaval—to industry practices.
