Re/Max to Pay $55 Million in Settlement of Class Action Lawsuits

Re/Max Holdings has reached a settlement agreement of $55 million in two class action lawsuits. The lawsuits questioned a rule that compelled home sellers to pay commissions to brokers representing buyers. The real-estate brokerage made the announcement in a recent securities filing. As part of the settlement, Re/Max has agreed to make certain changes to its business practices. However, specific details regarding these changes were not provided in the filing.

Re/Max emphasized that this settlement does not imply any admission of liability or acknowledgment of the validity of the claims made in the litigation. The company continues to deny the allegations mentioned in the suits.

Currently, settlement documents have not been made public for the two cases in Missouri and Illinois that are involved in this resolution.

In a statement, a spokesperson for Re/Max expressed that the settlement was in the company's best interest, considering the significant risks and costs associated with ongoing litigation. However, the spokesperson did not disclose the terms of the settlement. The spokesperson also mentioned that due to confidentiality agreements and ongoing proceedings, Re/Max would refrain from providing further comments at this time.

Both lawsuits accuse the National Association of Realtors and the four largest national real estate broker franchisors, including Re/Max, of colluding to impose a buyer-broker commission requirement, leading to inflated commissions that sellers were obligated to pay.

Anywhere Real Estate, formerly known as Realogy Holdings, another co-defendant in the cases, separately agreed to settle earlier this month by paying $83.5 million in damages. The remaining co-defendants are HomeServices of America and Keller Williams Realty.

As of now, representatives for the National Association of Realtors and Keller Williams have not responded to requests for comment. A spokesperson for HomeServices of America declined to provide a statement.

Re/Max has stated that it will utilize its available cash to fund the settlement. The payment will be divided into three installments, with 25% due on September 29, another 25% within 10 business days of preliminary court approval, and the remaining 50% within 10 business days of final settlement approval.

Alongside this announcement, Re/Max has reaffirmed its third-quarter and full-year guidance.