15 commission lawsuit settlements are up for final approval next week

Commission lawsuit settlement agreements from 15 real estate industry players, including major names like Keyes Co./Illustrated Properties, Side, JPAR, NextHome and Baird & Warner will be up for final approval on Tuesday, June 24.

The fifteen settling defendants, which come from the Gibson and Keel suits, filed a joint motion for final approval of the settlements this week.

Judge Stephen R. Bough, who oversaw the Sitzer/Burnett trial, is overseeing both of the commission lawsuits with settlements up for approval. In late October 2024, he granted final approval to nine other settlements in the Gibson suit. 

Of the 15 settling defendants, six were named in the Gibson suit and nine in the Keel suit.

The Gibson settling defendants include Keyes Co./Illustrated Properties ($2.4 million), NextHome ($600,000), John L. Scott ($1 million), LoKation ($925,000), Real Estate One ($1.5 million), and Baird & Warner ($2.2 million).

The Keel settling defendants include Side ($5.5 million), Seven Gables Real Estate ($1 million), Washington Fine Properties ($1.3 million), JPAR ($700,000), Signature Properties of Huntington ($850,000), Central New York Information Services ($125,000), Brooklyn New York MLS ($95,000), First Team Real Estate — Orange County ($1 million), and Sibcy Cline ($895,000). 

At the hearing, Bough will be looking at a total settlement amount of $20.09 million for these agreements. This would bring the overall settlement total for the commission lawsuits to roughly $1.04 billion.

The settlement amounts are non-reversionary, meaning that if money is left over after all expenses, fees and claims are paid, the money will not be returned to the settling defendants. Class members with approved claims will be able to receive funds via debit card, check, Zelle or Venmo.

In addition to agreeing to contribute to the settlement fund, the defendants agreed to business practice changes, which align with those agreed upon by previously settling parties and the National Association of Realtors (NAR) in its 2024 settlement agreement. 

“Each Settlement is similar in structure and substance to prior settlements which this Court has already approved,” the filing states. “When coupled with the practice change relief reflected in the NAR settlement, these reforms will promote price competition and, over time, are expected to bring about meaningful benefits for consumers.”

According to the motion, the settlements were reached after “engaging in extensive arm’s length negotiations.” The parties reportedly only reached agreements “after considering the strengths, risks and costs of continued litigation.” 

Settlement class members had until May 9, 2025, to file claims. According to the filing, more than 2.5 million claims had been received by this date.

Additionally, there were no objections to the Gibson settlement and only one to the Keel settlement. The parties claim that the Keel objection fails to “identify any reason why the Settlements are not fair, reasonable, and adequate.”

Given Bough’s track record, which includes granting at least preliminary approval to all commission lawsuit settlements — except for those from eXp World Holdings and Weichert Realtors, which were negotiated with the Hooper plaintiffs — most real estate industry watchers expect the final settlement approvals to sail right through.