Key Details:
- New York-based Douglas Elliman is the latest real estate firm to settle, agreeing to pay $7.75 million within 30 days of the proposed settlement’s preliminary approval, followed by two additional payments of $5 million each over the next three years.
On Monday, April 29, New York-based Douglas Elliman announced its agreement to pay up to $17.75 million to settle U.S. commission lawsuits.
This comes just three days after HomeServices of America announced its settlement for $250 million—more than half the amount agreed to by the National Association of Realtors® (NAR) in March.
According to the Douglas Elliman news release, the company has agreed to pay $7.75 million within 30 days of the court’s preliminary approval, followed by two additional payments of $5 million each over the next three years.
Those $5 million payments hinge on the company’s cash balance remaining at or above $40 million through the end of 2027. If it dips below $40 million for any month from the end of 2025 through 2027, the company will not have to make those additional payments, according to Douglas Elliman’s 8-K filing.
Consistent with the stipulations made in previous industry settlements, Elliman has also agreed to make certain changes in the way it does business.
The settlement agreement reflects Douglas Elliman’s commitment to mitigating future uncertainties and limiting legal costs, which will benefit our Company, agents and stockholders.
Here’s what we know so far.
Lawsuits naming Douglas Elliman as a defendant
Douglas Elliman was named in multiple lawsuits after the jury issued a verdict for the plaintiffs in the Sitzer/Burnett trial last October. These include Gibson and Umpa in Missouri, Boykin and Whaley in Nevada, Friedman and March (both dismissed), and Batton 2, which was filed by a home buyer in Illinois.
Stay tuned as we update you on the progress of this and other industry settlements.
