The company denied that it is not doing well and said that it has agreed to settle with the plaintiffs in an effort to move forward and grow the business.
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Fathom Realty will pay $2.95 million and agree to changes outlined in a settlement agreement with the National Association of Realtors in an effort to resolve its legal problems, the company announced this week.
Fathom, a site of public company Fathom Holdings, was among a number of brokerages and franchises that exceeded $2 billion in sales volume by 2022 and as a result had to reach a settlement with real estate plaintiffs targeting the real estate industry in class action lawsuits. .
“Fathom Realty was founded with the mission of bringing unparalleled support to our agents,” CEO Marco Fregenal said in a statement. “We believe this decision represents the smartest way forward, helping our agents focus on their clients without the distraction of lengthy litigation.”
Fathom Holdings, a publicly traded company, said it was not required to disclose the terms of the settlement, but chose to do so in the name of transparency.
The company will pay $500,000 within five days of the deal being approved.
Another $500,000 will be deposited on Oct. 1, 2025, and $1.95 million on Oct. 1, 2026.
“The company believes it has, and will generate, sufficient cash to make these payments without disrupting its business,” the company said.
The company said it did not admit liability or liability related to the claims made against it and a number of other real estate companies that are in a long list of class action lawsuits aimed at how real estate agents are paid.
“We continue to assert that Fathom has never participated in any conspiracy to raise commissions and we continue to believe that due to our low fee model, there is no incentive to join any such conspiracy,” Fregenal said.
Instead, he said the decision to settle will help the company move forward.
“Entering into the agreement now has the benefits of avoiding ongoing legal costs and removing the need for executive team time, allowing us to focus on growing our business and ensuring that our agents continue to have the opportunity to succeed in serving customers,” said Fregenal.
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