A three-judge panel of the Eighth Circuit Court of Appeals is scheduled to hear oral arguments Wednesday related to the March 2024 settlement in the long-running Sitzer-Burnett antitrust litigation.
The appeal was filed shortly after a federal district court approved the settlement in November 2024. According to a statement in the court filings, the challengers include home sellers who fall within the settlement class, a law professor, and a plaintiff involved in separate litigation brought by home buyers in the Batton case. More than a year after the settlement received judicial approval, those objectors will now present arguments seeking to overturn that decision.
Those opposing the settlement contend that the district court made several errors when granting approval. Per a statement outlining their position, they argue that the plaintiffs lacked legal standing, that the size of the settlement fund and the method for distributing payments are unfair, and that the agreement improperly includes home buyers within its scope.
Both plaintiffs and defendants are expected to urge the appeals court to uphold the settlement. According to a statement from the National Association of Realtors, the defense will argue that the district court acted within its broad discretion when approving the agreement. NAR General Counsel and Senior Vice President of Legal Jon Waclawski said that even if potential errors were identified, they would not undermine the overall validity of the settlement. “After all, settlements are a manifestation of tradeoffs,” Waclawski said, adding that the agreement aligns with established law and judicial precedent. He also noted, “Appeals are a routine part of complex litigation, and NAR will continue to defend the settlement on appeal.”
The Sitzer-Burnett case dates back to 2019, when it was filed as an antitrust class action against NAR and several major real estate brokerages, including Anywhere Real Estate, RE/MAX, Keller Williams and HomeServices of America. According to a statement summarizing the plaintiffs’ claims, home sellers alleged that the defendants conspired to inflate real estate commissions, with a particular focus on the practice of cooperative compensation.
Read more: Reports of ‘Click-to-Cancel’s Death May Be Premature
The case proceeded to trial in the fall of 2023, where a jury ruled in favor of the plaintiffs. That verdict exposed the defendants to significant damages and triggered a wave of similar lawsuits. While continuing to maintain that cooperative compensation benefits competition and consumers, NAR and other defendants opted to resolve the litigation through settlement.
Under the March 2024 agreement, NAR committed to major policy changes and more than $1 billion in total relief for a nationwide class of home sellers, according to a statement describing the settlement terms. In exchange, the agreement provides a broad release of claims.
The settlement also covers a wide range of industry participants. Per a statement detailing the scope of the release, it applies to more than 1 million NAR members, all state, territorial and local REALTOR® associations, REALTOR® multiple listing services, NAR affiliate organizations, and brokerages with an NAR member as principal that recorded residential transaction volumes of $2 billion or less in 2022. MLSs and brokerages that chose to opt into the settlement were also granted liability protection.
Financially, NAR agreed to contribute $418 million over a four-year period. According to a statement made during NAR’s most recent Board of Directors meeting, the association paid $197 million in February 2025 and is scheduled to make an additional $72 million payment in February 2026.
The appellate court’s decision will determine whether the landmark settlement stands or is sent back for further review.
Source: Real Estate News
