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Court Gives Green Light to $110M Deal in Real Estate Commission Dispute

By  |  November 3, 2024

Online real estate platforms Redfin Corp. and Compass Inc., along with seven other companies, have secured court approval for a $110 million settlement aimed at resolving allegations of inflating real estate commission fees in violation of antitrust laws. This settlement, approved by Judge Stephen R. Bough of the U.S. District Court for the Western District of Missouri, adds to a broader array of settlements now totaling over $1 billion across related cases, according to Bloomberg.

The case, spearheaded by plaintiffs represented by attorney Steve Berman of Hagens Berman Sobol Shapiro LLP, accuses the defendants—who include prominent real estate brokerage companies and the National Association of Realtors (NAR)—of conspiring to artificially maintain high brokerage fees for homes listed by NAR-affiliated multiple listing services. In a landmark ruling last year, a Missouri jury awarded nearly $1.8 billion in damages, finding that the NAR had played a central role in the alleged scheme. Per Bloomberg, Berman expressed optimism about the approval of the settlement, calling it “a historic settlement that will change the way commissions are charged in the real estate industry.”

Redfin, which has touted itself as a consumer-friendly alternative in real estate, defended its role in the case. In a statement to Bloomberg, the company highlighted its efforts to reduce consumer costs, noting that it has saved clients over $1.6 billion in fees to date. “Redfin never belonged in this case, and we’re glad to resolve it and move forward,” the company stated.

Related: US Judge OKs $110 Million Settlements in Antitrust Case Against Major Real Estate Brokerages

In addition to Redfin and Compass, other companies involved in the settlement include Real Brokerage Inc., Realty ONE Group, At World Properties, Douglas Elliman, Engel & Völkers, HomeSmart, and United Real Estate. Each of these firms has agreed to the terms of the settlement, though there were objections from certain parties questioning whether the deal met standards of fairness and adequacy. However, the settlement ultimately moved forward, according to Bloomberg, despite these concerns.

The approval of the settlement marks a pivotal point in the broader legal battle surrounding real estate commissions. The case, Gibson v. National Association of Realtors, continues to be one of the most closely watched in the industry. The defendants are represented by a legal team that includes firms such as Paul, Weiss, Rifkind, Wharton & Garrison LLP, Crowell & Moring LLP, and Kasowitz Benson & Torres LLP. As the real estate industry faces increased scrutiny over commission structures, this settlement may signal broader shifts in how brokerage fees are set and could prompt additional regulatory changes.

Source: Bloomberg

Zuckerberg Pushes for Settlement Ahead of Antitrust Trial Zuckerberg Pushes for Settlement Ahead of Antitrust Trial

Zuckerberg Pushes for Settlement Ahead of Antitrust Trial

By  |  April 2, 2025

Meta Platforms CEO Mark Zuckerberg is actively lobbying U.S. President Donald Trump and White House officials in an effort to reach a settlement that would prevent the company from facing an upcoming antitrust trial, according to the Wall Street Journal. The trial, scheduled for April 14, could have significant consequences for Meta, including the potential forced divestiture of its acquisitions, WhatsApp and Instagram.

Per the Wall Street Journal, Meta representatives have met with Trump and his senior advisers in recent weeks to discuss the Federal Trade Commission (FTC) lawsuit, which accuses the company of engaging in anticompetitive practices. Zuckerberg himself visited the White House on Wednesday, marking his third visit during Trump’s presidency. However, the Wall Street Journal notes that some White House aides have grown frustrated with Meta’s lobbying approach, viewing it as overly aggressive.

Meta spokesperson Andy Stone commented on the company’s engagement with policymakers, stating, “We regularly meet with policymakers to discuss issues impacting competitiveness, national security, and economic growth.” Meanwhile, White House Press Secretary Karoline Leavitt declined to provide a comment, and an FTC representative did not immediately respond to inquiries.

The FTC’s lawsuit argues that Facebook, now Meta, has maintained its dominance in the social networking space through a long-term strategy of eliminating competitive threats. According to the complaint, the company has engaged in anticompetitive conduct to sustain its monopoly power. While the FTC is an independent agency, Trump has sought to increase executive oversight over such entities, requiring them to submit significant regulations for White House review.

Related: FTC Targets Meta’s Market Power, Calls Zuckerberg to Testify

A person familiar with Trump’s thinking told the Wall Street Journal that the president has not yet made a decision on whether the administration will seek a settlement with Meta. Former FTC Chairman Jon Leibowitz, who served under both the Bush and Obama administrations, commented on the unusual nature of a company approaching the White House regarding an antitrust case. “It is unusual for companies involved in big antitrust lawsuits to go to the White House, but it has happened before,” Leibowitz said. However, he added that he has never seen a White House attempt to influence the FTC’s decision-making process, emphasizing the agency’s independence in such matters.

Zuckerberg’s efforts to engage with Trump follow a history of mixed relations between the two. According to the Wall Street Journal, Meta contributed $1 million to Trump’s inaugural fund and Zuckerberg made visits to Mar-a-Lago during the presidential transition. Additionally, in January, Meta settled a lawsuit Trump had filed against the company over its suspension of his social media accounts following the January 6, 2021, attack on the U.S. Capitol. The settlement resulted in a $25 million payment, with $22 million allocated to Trump’s presidential library fund.

As the April 14 trial approaches, it remains to be seen whether Meta’s lobbying efforts will yield a favorable resolution.

Source: The Wall Street Journal