Lawyers Claim eXp’s Settlement Tactics Hurt Antitrust Case Potential

Missouri home sellers have raised concerns about a settlement negotiated by real estate broker eXp World Holdings in a Georgia antitrust lawsuit, alleging that it was deliberately undervalued to limit potential payouts in a separate nationwide class action. According to Reuters, attorneys for the Missouri plaintiffs have urged a Georgia judge to reject the proposed $34 million settlement with eXp and an $8.5 million agreement with realtor Weichert, claiming these deals were done “on the cheap.”

The plaintiffs’ legal team, including firms such as Susman Godfrey, Cohen Milstein Sellers & Toll, and Hagens Berman Sobol Shapiro, is pressing for scrutiny of the settlements. Their argument underscores the high stakes of antitrust litigation in the real estate sector, a burgeoning field for class action plaintiffs’ attorneys. Per Reuters, the same legal teams secured a $1.8 billion jury verdict in October 2023 in a related case against major brokers and the National Association of Realtors. That case ultimately resulted in settlements exceeding $1 billion, potentially yielding hundreds of millions in legal fees for the attorneys involved.

Related: Top Agent Network Drops Antitrust Suit Against National Association of Realtors

At the center of the dispute is the allegation that eXp may have engaged in a “reverse auction,” a tactic where defendants seek out plaintiffs willing to accept lower settlements to avoid larger payouts in other related cases. U.S. District Judge Stephen Bough, presiding over the Missouri case, has ordered eXp to produce records from the Georgia settlement to determine if such a strategy was employed. However, eXp has pushed back, arguing that the documents are confidential and outside Bough’s jurisdiction to review, per Reuters.

Both the Missouri and Georgia lawsuits, filed in 2023, accuse eXp and other defendants of violating antitrust laws by mandating that home sellers pay commissions to buyers’ agents to list their properties. In response to the criticism, eXp issued a statement asserting confidence that the Georgia judge will deem the settlement “fair, reasonable and adequate.” The company continues to deny any antitrust violations.

Source: Reuters