BAM Key Details:
- RE/MAX, LLC has reached a settlement with the plaintiffs in the class action lawsuits known as Moerhl and Burnett (formerly Sitzer), making them the second—after Anywhere—to take this step.
- RE/MAX has agreed to pay $55 million and to change certain business practices, though details will remain under wraps until after the court approves the agreement.
RE/MAX, LLC is now the second defendant in the class action lawsuits known as Moerhl and Burnett (formerly Sitzer) to reach a settlement with the plaintiffs.
According to an internal email obtained by BAM, RE/MAX, LLC agreed “to pay $55 million and make changes to certain business practices,” though details won’t be released until after the court approves the settlement. The settlement includes releases for all RE/MAX agents and franchisees in the U.S.
Meanwhile, other defendants, including the National Association of Realtors® (NAR), remain quiet, with the exception of a confident statement earlier this month.
RE/MAX’s decision to reach a settlement
RE/MAX follows Anywhere’s decision to settle both class action lawsuits, which was announced on September 5, 2023. In an email statement to BAM, it appears RE/MAX leadership has weighed its options and what each would cost the brand, its agents and the people they serve. Settling now is the bitter pill they’re willing to swallow to avoid a greater cost in terms of legal fees, uncertainty, and the potential for additional litigation.
In the statement, a RE/MAX spokesperson made it clear that the settlement is not an admission of wrongdoing, nor does it imply agreement with the plaintiffs.
RE/MAX, LLC has entered into a nationwide class settlement with plaintiffs in the Burnett (formerly Sitzer) and Moehrl cases. If approved by the court, the settlement paves the way for a clear path forward for the RE/MAX brand, its franchisees and its agents, removing the uncertainty of ongoing litigation related to these cases. While RE/MAX, LLC steadfastly refutes the allegations presented in the lawsuits, this forward-looking decision was made in the best interest of RE/MAX, LLC, its agents and its franchisees, after carefully considering the significant risks and costs associated with continued litigation. Co-Founders Dave and Gail Liniger built the RE/MAX brand with Broker/Owners, agents and consumers at the center of the business and, if approved, the settlement specifically includes releases of liability for RE/MAX franchisees and agents.Given confidentiality agreements and ongoing proceedings, RE/MAX has no further comment at this time.
This settlement comes about a month before the Burnett case is set to go to trial. We will continue to update as we learn more details surrounding this settlement and any further developments related to these class action lawsuits and their impact on buyer agency.
