The brokerage was the third largest by sales volume in 2022 and was one of the few brokerages that had not yet settled lawsuits targeting the old state of real estate commissions.
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EXP Realty has become the largest real estate company to reach an agreement to settle a pending antitrust lawsuit filed by real estate plaintiffs, according to a new filing with federal regulators Monday.
The company agreed to pay $34 million in a settlement that exceeded $1 billion in total class action. It will also make unspecified changes to its business processes.
“The Settlement resolves all claims in the Lawsuits and similar claims nationwide against the Company (collectively, the “Claims”) and releases the Company, its subsidiaries and affiliates, and its agents independent real estate contractors in the United States from Claims,” it wrote company in brief file.
The settlement came in a case known as Hooper vs. National Consumers Association. Accessed Oct. 1, the filing said.
EXp will pay $17 million into the fund within a month of receiving final court approval and another $17 million annually thereafter.
The company said its settlement will address similar cases, including Gibson, Grace, Fierro, Latham, Whaley, Wang and Burton.
EXp was among a number of companies not covered in a settlement agreement reached by the National Association of Realtors in March.
That deal includes most brokerages and agents that made less than $2 billion in revenue by 2022. We’ve also created a way for those earning more than $2 billion to reach compensation on their own through arbitration.
EXp was the third highest-grossing brokerage in 2022, pulling in a total of $159.14 billion, according to the report. The Real Estate Almanac.
The company used to be among a small group of stakeholders in some of the country’s largest real estate companies.
Compass agreed to settle the lawsuits in March for $57.5 million. HomeServices of America agreed to settle in April for $250 million. Douglas Elliman settled in April for $17.75 million. Redfin agreed to settle the lawsuits for $9.25 million in May.
This story will be updated.
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