Leading Real Estate Giants Found Guilty in Collusion Case, Facing $1.78B in Damages
In a shocking development that has sent shockwaves throughout the real estate industry, the National Association of Realtors (NAR), Keller Williams, and HomeServices of America have been found guilty of colluding over commission rates by a jury. Although the decision is yet to be finalized by the judge, all parties involved are already contemplating their next course of action.
Addressing the verdict, NAR stated in a blog post that this matter is not close to being final. The trade group has expressed its intention to appeal the verdict and seek a reduction in the damages awarded by the jury.
To understand the scope of this litigation, here’s a breakdown of the key figures and facts associated with the case so far:
– The trial, held in a Kansas City courtroom, witnessed two weeks of testimony regarding the alleged collusion between NAR, Keller Williams, and HomeServices of America over commission rates.
– It took the jury a mere two and a half hours of deliberation to reach their verdict.
– A staggering 500,000 home sellers in Missouri have accused NAR, Keller Williams, and HomeServices of America of conspiring to increase commission costs.
– The jury has awarded a monumental $1.78 billion in damages.
– If the judge awards treble damages, as is possible in such cases, the defendants could be on the hook for a whopping $5 billion.
– In an upcoming trial in Chicago, known as Moehrl, involving similar issues, the defendants may potentially face $40 billion in damages should the plaintiffs prevail and the judge awards treble damages.
– Notably, Anywhere Real Estate and Re/Max settled for a combined total of $138.5 million ($83.5 million and $55 million, respectively), along with implementing updates to their business policies prior to going to trial. This turn of events proved prescient given the jury’s verdict.
– Immediately following the jury verdict, a lawsuit was filed by the plaintiff’s attorney against NAR, Compass, Douglas Elliman, eXp, Redfin, Weichert Realtors, United Real Estate, and Howard Hanna Real Estate Services for similar offenses that were claimed in the Sitzer/Burnett trial.
– NAR is set to appoint a new interim CEO, Nykia Wright, who will take over on November 20. The current embattled CEO, Bob Goldberg, who had planned to step down at the end of the year, accelerated his departure just two days after the jury verdict was announced.
This landmark decision has significant implications for the real estate industry, prompting concerns and discussions among industry players. As the case progresses and parties consider their options, the repercussions of this collusion verdict reverberate throughout the sector, leaving many wondering about the potential future impact and fallout.
