BAM Key Details: 

  • On Monday, May 3, 2024, Redfin became the 10th brokerage to reach a settlement, filing a Form 8-K report with the U.S. Securities and Exchange Commission (SEC) agreeing to pay $9.25 million to settle commission lawsuits. 
  • Gibson v NAR, which was later consolidated with Umpa vs NAR, names Redin as a defendant. The proposed settlement agreement, if approved, will resolve all claims against the company. 

On May 3, 2024, Redfin Corporation filed a Form 8-K report with the United States Securities and Exchange Commission. The report details a proposed settlement agreement, in which Redfin will pay $9.25 million. 

Commission lawsuits naming Redfin as a defendant include Gibson, which was filed the day of the Sitzer/Burnett verdict. 

As the 10th company to agree to a settlement, Redfin has no doubt agreed to make the same policy changes stipulated in other proposed settlements. 

From the SEC filing: 

“On May 3, 2024, we entered into a settlement term sheet (the “Proposed Settlement”) to resolve on a nationwide basis the pending class action litigation Gibson v. NAR, No. 4:23-cv-00788 (W.D. Mo.), which has been consolidated with Umpa v. NAR, 4:23-cv-00945 (W.D. Mo.), and is pending in the United States District Court for the Western District of Missouri (collectively, the “Lawsuits”). 

“The Proposed Settlement resolves all claims in the Lawsuits, and similar claims on behalf of home sellers on a nationwide basis, against us (the “Claims”) and releases us, our subsidiaries, and our agents from the Claims. The Proposed Settlement does not require an admission of liability, nor do we concede or validate any of the claims asserted against us in the Lawsuits. 

“Under the Proposed Settlement, we agreed to pay $9.25 million (the “Settlement Amount”) into a qualified settlement fund within 30 days of the court’s preliminary approval of the Settlement Agreement. We do not expect the terms of the Proposed Settlement to have a material impact on our future operations.” 

10 Brokerages and  Organizations Have Reached Settlement Agreements

  1. Anywhere ($83.5 million)
  2. RE/MAX ($55 million)
  3. Keller Williams ($70 million)
  4. National Association of Realtors (NAR) ($418 million)
  5. Compass ($57.5 million)
  6. Real Brokerage ($9.25 million)
  7. Realty ONE Group International (not disclosed)
  8. Douglas Elliman ( up to $17.5 million)
  9. HomeServices of America (Berkshire Hathaway) ($250 million)
  10. Redfin ($9.25 million)

Stay tuned for updates as we track the settlements’ progress.