Lawyers representing U.S. home sellers in Missouri are challenging a $34 million settlement between real estate broker eXp World Holdings and plaintiffs in a Georgia antitrust case. The plaintiffs’ attorneys argue that the settlement is too low and was strategically negotiated to avoid a potentially much larger payout in a nationwide class action lawsuit.
The Missouri plaintiffs’ legal teams, including firms like Susman Godfrey, Cohen Milstein Sellers & Toll, Hagens Berman Sobol Shapiro, and others, voiced their concerns to the Georgia court last week. They accused eXp and another realtor, Weichert, of negotiating “on the cheap” with settlements of $34 million and $8.5 million, respectively, which they believe should be rejected.
Antitrust lawsuits involving real estate brokerage practices have become highly lucrative for class-action lawyers. The same legal teams recently secured a nearly $2 billion verdict against major home brokers and the National Association of Realtors, with settlements reaching over $1 billion. These attorneys are poised to earn millions in legal fees, strengthening their position in future cases.
As part of their legal strategy, the Missouri plaintiffs have requested that U.S. District Judge Stephen Bough compel eXp to release settlement documents from the Georgia case. The judge is investigating whether eXp conducted a “reverse auction” to find plaintiffs willing to accept lower settlement amounts. eXp contends that the settlement records are confidential and argues that the Missouri court has no jurisdiction to review the Georgia case’s documents.
Both the Missouri and Georgia lawsuits, filed in 2023, accuse eXp and other real estate companies of violating antitrust laws by requiring home sellers to agree to pay commissions to buyers’ agents in order to list their homes for sale. eXp has denied any wrongdoing and maintains that the $34 million settlement is fair and reasonable.
The legal battles surrounding this case are just the latest in a series of class-action lawsuits challenging corporate practices. Attorneys in similar cases continue to seek significant legal fees for their work, highlighting the high stakes and growing industry surrounding antitrust litigation.
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