A judge's gavel on top of a calendar page

5 brokerage settlements receive preliminary approval 

Firms that settled in the Gibson/Umpa case in March and April will have until later this year to finalize the agreements, but more than 20 defendants remain.

April 30, 2024
3 minutes

The judge in the Gibson/Umpa case has granted preliminary approval for five settlements and plans to finalize the agreements this fall.

U.S. District Court Judge Stephen Bough signed off on the settlements for Compass, Real Brokerage, Realty ONE Group, At World Properties and Douglas Elliman. Compass announced its settlement on March 22, while the other firms settled in April.

HomeServices of America also settled in April, but the agreement has not yet received preliminary approval. Court documents indicate that additional paperwork needs to be submitted before the judge can take action.

The Gibson and Umpa cases were both filed in Missouri last year and were consolidated into one case on April 23.

When will the settlements be finalized? The parties involved will contact the court to schedule a final approval hearing, which must take place within the next seven months. Judge Bough said the hearing will be no later than Nov. 26, 2024 — the date of NAR's final approval hearing for its proposed settlement in the Sitzer/Burnett case, which Bough is also overseeing.

What the judge had to say: In reviewing the settlements, Bough said in court documents that they were "fair, reasonable and adequate." He noted that the agreements were negotiated at arm's length, meaning the parties had no prior relationship and entered into the agreements freely.

Who is in the settlement class? Most of the class consists of home sellers who used one of the named brokerages to list a home on an MLS in the U.S. between the end of October 2018 and the date of the class notice, though the dates vary somewhat depending on the circumstances of each defendant. 

Which defendants have not settled in Gibson/Umpa? According to the court case summary at the end of April, more than 20 companies have not yet settled. They will have until June 18 to pay the opt-in amount negotiated by NAR or reach their own agreements with the plaintiffs. 

These are the remaining defendants:

  • eXp World Holdings

  • Redfin

  • Weichert Realtors

  • United Real Estate

  • Berkshire Hathaway Energy

  • Long & Foster Companies

  • Hanna Holdings, which was added as a defendant after the plaintiffs previously dismissed Howard Hanna Real Estate Services from the case.

  • HomeSmart

  • Engle & Volkers

  • NextHome

  • EXIT Realty

  • Windermere

  • Lyon Real Estate

  • William Raveis Real Estate

  • John L. Scott Real Estate

  • The Keyes Company

  • Illustrated Properties LLC

  • Parks Pilkerton Village Real Estate

  • Crye-Leike Real Estate Services

  • Baird & Warner Real Estate

  • LoKation Real Estate LLC

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