The Hooper commission lawsuit plaintiffs and the brokerage defendants that have reached proposed settlement agreements are looking to make things official.
On Wednesday, the Hooper plaintiffs — along with remaining defendants Mark Spain Real Estate, eXp World Holdings, Weichert of North America and Atlanta Communities Real Estate Brokerage — filed a motion for preliminary approval of their settlements and preliminary certification of the settlement class.
The four brokerages have agreed to business practice changes, as well as total payments of $44.05 million. Mark Spain Real Estate would pay $750,000, eXp World Holdings $34 million, Weichert of North America $8.5 million and Atlanta Communities Real Estate Brokerage $800,000 as part of the settlements.
According to the motion, “if approved, the settlements would bring meaningful relief to home sellers as well as certainty and closure to highly contentious and costly litigation with the Settling Defendants.”
The settling parties argue that the proposed settlements, as well as the proposed settlement class, are consistent with the settlements in the Gibson and Sitzer/Burnett suits, which have received final approval.
“Like those settlements, the parties here have negotiated proposed Settlements that resolve on a nationwide basis Plaintiffs’ claims for damages and injunctive relief against the Settling Defendants for their alleged anticompetitive practices in the market for residential real estate brokerage services,” the filing states.
“The proposed Settlements with eXp, Weichert, Atlanta Communities, and Higher Tech [Mark Spain] provide for meaningful practice changes, cooperation in litigation against non-settling defendants, and total payments of $44.05 million.”
The motion notes that the settlements were reached “through extensive negotiations,” which went on for several months.
“The parties reached the Settlement Agreements after considering the risks and costs of litigation. Plaintiffs and Class Counsel believe the claims asserted have merit and that the evidence developed to date supports the claims,“ the motion states.
“Plaintiffs and counsel, however, also recognize the myriad risks and delay of further proceedings in a complex case like this and believe that the settlements confer substantial benefits upon the Settlement Class Members. The Settling Defendants deny the material allegations of the Complaint and any wrongdoing but wish to avoid the time, expense, uncertainty, and risk attendant with further litigation.”
If the settlements are granted preliminary approval, the settlement class members will have an opportunity to exclude themselves from the settlements or object to their approval.
Once preliminary approval is received, notices will be mailed to class members within 60 days and the final approval hearing will be scheduled at least 140 days after the entry for the preliminary approval.
This motion comes despite backlash against the settlements from plaintiffs in other home seller commission lawsuits. After eXp first filed its proposed settlement, the plaintiffs in the Gibson suit filed a motion to intervene, claiming that nation’s largest brokerage based on transaction side count used a “reverse auction” in choosing to settle with the Hooper plaintiffs. According to the Gibson plaintiffs, eXp settled for far less than they should have by negotiating with the Hooper plaintiffs.
Despite the criticism, eXp is not giving up without a fight. In subsequently filed documents, eXp has claimed that its settlement amount is fair, and that nothing prevents it or any other defendant from settling with one group of plaintiffs versus another.
