eXp, Weichert still can’t avoid Gibson case 

It's been more than a month since eXp and Weichert received preliminary approval of their settlements in a commissions case in Georgia, but the two brokerages still aren't off the hook in Missouri, a judge ruled today.

Litigation will not be paused: U.S. District Court Judge Stephen Bough, who oversaw the landmark Sitzer/Burnett case and is currently handling the Gibson case, again denied a motion from the real estate firms to pause litigation in Gibson, saying that the discovery phase — the pre-trial period when parties can request information from each other — may continue. Bough denied a similar motion last November.

The 'sweetheart deal' debate: One line of investigation the plaintiffs are still pursuing is whether a reverse auction took place, an allegation they made weeks after eXp announced its settlement in the Hooper case in Georgia — which the plaintiffs called "an improper sweetheart deal." In situations where there are several competing lawsuits, a reverse auction occurs when a defendant shops around for the lowest settlement, something Bough cited as "questionable behavior" when denying eXp's previous request for a stay.

No harm in proceeding: In a four-page order filed June 30, Bough said Weichert and eXp failed to demonstrate how proceeding with discovery would present a hardship to the firms, adding that since the Gibson plaintiffs intend to pursue discovery regardless of the outcome in Hooper, it should be allowed to continue.

eXp responds: In a company statement shared with Real Estate News, eXp said its main focus will be on the Hooper case.

"We remain focused on securing final court approval of the settlement in our case in the Northern District of Georgia. We believe the settlement is fair, reasonable, and in the best interests of all parties involved. While the court in this case has chosen not to stay proceedings at this time, that decision does not change our commitment to resolving these matters responsibly and efficiently," the brokerage said.

Objections can be presented in October: Attorneys for the Gibson plaintiffs have noted that Judge Mark Cohen, who is overseeing Hooper, has declined to hear arguments about reverse auction allegations to this point, suggesting that the final settlement approval hearing, scheduled for Oct. 28, would be the appropriate time to hear them.

In a March 28 filing, Judge Cohen said the Gibson plaintiffs will have every opportunity to object to the settlements through the court hearing process.