Engel & Völkers has become the latest brokerage to settle class-action commission lawsuits by sellers, according to filings in federal court today, as the international luxury brand entered into a preliminary agreement with plaintiffs to end litigation claiming the company participated in a conspiracy to inflate commissions.
Terms of the agreement were not released, and a representative for Engel & Völkers did not immediately respond to an RISMedia request for comment.
Founded in Germany in the 1970s, the company has experienced significant growth in recent years as a luxury brand. Its history and structure in the international market also stood out in the context of these lawsuits, as at one point another set of plaintiffs had trouble serving the company due to questions over jurisdiction.
Engel & Völkers joins Compass, Douglas Elliman, @properties Christie’s International Real Estate, Redfin, Realty ONE Group and The Real Brokerage as companies named in “copycat” suits that have chosen to settle in the months following the Burnett trial. Brokerages have paid around $550 million to settle lawsuits by recent homesellers, who claim rules regarding how buyer commissions were paid inflated real estate pay at their expense.
HomeServices of America, Anywhere, RE/MAX, Keller Williams and the National Association of REALTORS® have also entered into settlement agreements, though most of these still face lawsuits filed by recent homebuyers, who have made similar accusations.
Engel & Völkers’ agreement must still be approved by a judge before being finalized.
