The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
eXp and Weichert face new Gibson deposition
Weichert and eXp’s attempts to settle in the Gibson v. NAR commission case hit a stumbling block earlier this year. It was found there was a “plausible” case that the companies had partaken in a “reverse auction” (seeking a settlement with one plaintiff in a class-action lawsuit to drive down settlement costs) by both settling in the smaller case known as Hooper.
On Feb. 21, 2025, two notices were given—one to Weichert and one to eXp—compelling unnamed representatives from both companies “best able to testify as to the matters” disputed in the negotiations to appear for deposition. The deposition will take place on Fri. March 7, 2025, and will focus on the alleged reverse auction.
According to the deposition order, topics of interest to be discussed in the deposition—from both Weichert and eXp representatives—include communications that Weichert/eXp held with “any mediator used or considered in connection with any settlement negotiations in the Hooper case,” with the plaintiff’s counsel in the Hooper case and with each other.
Judge denies arbitration for defendants in Burnett copycat case
William Raveis and Berkshire Hathaway Energy (BHE), the parent company of HomeServices of America, also saw setbacks in the Gibson case.
In a filing on Mon. Feb. 24, 2025, Judge Stephen R. Bough denied the two companies’ request to enforce arbitration clauses in listing agreements and effectively stay the case. Bough opined that this request is premature, in part because the sellers who signed these listing agreements have not yet been certified as a class. He also cited a previous decision in the Burnett case that nonparties to listing agreements (signed between agents and their clients) cannot compel that the arbitration take place.
HomeServices of America had previously made a similar argument regarding those arbitration clauses during the Burnett case, which was denied by the Eighth Circuit Court of Appeals. The Supreme Court then declined to take up an appeal of the ruling, in effect letting the Eighth Circuit decision stand.
Michigan real estate professionals continue to push NAR lawsuit over MLS access
A trio of Michigan real estate professionals at Signature Sotheby’s—Owner Douglas Hardy, President and Managing Broker Glenn Champion and agent Dylan Tent—are currently embroiled in a lawsuit against the National Association of REALTORS® (NAR) and several local Michigan associations.
The crux of the suit is MLS access, with the plaintiffs arguing membership of these associations should not be a condition of access. They also argue that the NAR settlement and subsequent rule changes have reduced the value of association membership and MLS access.
In January, NAR and the other associations asked that the case be dismissed, arguing the plaintiffs’ arguments fail to allege or provide evidence of antitrust violations, or that REALTOR® membership causes anticompetitive harm.
The plaintiffs have now filed another brief in response, disputing the claims of the dismissal request and reiterating claims of antitrust violations.
“Defendants’ conduct—as illustrated through their mandatory requirement that all brokers and agents be members of their organizations in order to access the MLS and the associated ability to market properties—is unlawful and creates antitrust violations, and their uniform enforcement of those practices to control the market creates a conspiracy,” they wrote.
Consumer Financial Protection Bureau drops Rocket and Jason Mitchell lawsuit
The Consumer Financial Protection Bureau (CFPB) dropped four lawsuits in February, including one filed against Rocket Homes and the Jason Mitchell Group (JMG). Originally filed in December, that lawsuit alleged that the two defendants were engaged in an illegal kickback scheme, where Rocket would supposedly provide JMG with leads in exchange for steering clients to Rocket for mortgage services.
The case was dismissed with prejudice, meaning it cannot be refiled at a later date. In a statement obtained by RISMedia, Rocket subsidiary Rocket Homes reiterated their claim that the case was “a misrepresentation of the facts.”
“Rocket Homes has always connected buyers with top-performing agents based only on objective criteria like how well they helped homebuyers achieve their dream of homeownership. We are proud to put this matter behind us and remain focused on our mission to help everyone home,” said the statement.
The CFPB also dropped a lawsuit against the Tennessee-based Vanderbilt Mortgage & Finance—owned by Berkshire Hathaway. The CFPB had claimed when filing the lawsuit that Vanderbilt had “knowingly (trapped) people in risky loans in order to close the deal on selling a manufactured home,” in the words of former CFPB Director Rohit Chopra.
The Trump administration paused all enforcement action at the CFPB in February, though a series of layoffs at the CFPB was also paused on February 14 when a federal judge blocked the administration from firing more workers.
Despite speculation otherwise, the CFPB’s Chief Operating Officer Adam Martinez has told Politico that he does not believe the Trump administration is currently seeking to close the agency altogether.
More women file against Alexander brothers
Brothers Tal, Oren and Alon Alexander—the former two of whom previously served as luxury brokers at Douglas Elliman—are currently facing several civil and criminal accusations of sexual assault. As of February 28, the number of suits is up to 24, per the New York Times, which reports seven new lawsuits were filed against the brothers in the final week of February.
The brothers, who were arrested in Miami Beach on sex trafficking charges back in December 2024, have maintained innocence. The trial is currently scheduled for January 2026.
One of the lawsuits, which details alleged assaults stretching back to at least 2009, also widened the scope of liability to include Douglas Elliman and the company Kent Security Services, owned by the Alexanders’ parents Shlomo and Orly. The lawsuit alleges that former Douglas Elliman CEO Howard Lorber was aware (or should have been aware) of the brothers’ actions when they were in his employ, and that these actions were only possible due to the brothers receiving the financial backing of their parents.
Lorber resigned as Douglas Elliman CEO in October 2024, with the Wall Street Journal reporting the company’s board of directors pushed him out due to concerns about a “sexually charged work culture.” A lawyer for Tal Alexander has told the Wall Street Journal that no complaints about the brothers were ever filed with the company’s HR department.
The New York Times reports that Richard Klugh, a lawyer for Oren Alexander, wrote in an email criticizing the “frankly ridiculous” idea to sue the Alexander parents and that the claims themselves were “untimely, uncorroborated and legally unfounded.”
A single suit against the brothers was dismissed by the Federal District Court of Manhattan back in January 2025.
