The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
Moehrl lawsuit lawyers launch new investigation into real estate industry
Hagens Berman is a law firm that served as co-lead counsel in the 2019 Moehrl class-action lawsuit that preceded the Burnett case and focused on largely the same issues. Now, the firm has announced a new investigation into alleged practices within the real estate industry. The firm specifically sent an online release encouraging home sellers who worked with an agent to sell their home since 2021. (One part of the release uses the phrase “online real estate agent,” although another simply said agents without the online qualifier.)
The pertinent details of the investigation are vague thus far, though one part of the release claims that “brokers…may be violating consumer rights and causing home sellers to overpay.” It is also unclear the exact way this ties into issues raised in recent commission lawsuits.
It did not appear that a lawsuit had been filed at press time, nor does an investigation of this sort guarantee that one will be filed in the future. The National Association of Realtors® (NAR) has also not been named as a target of the investigation. An association spokesperson shared in a statement with RISMedia that: “NAR provides educational resources to our members and consumers to ensure the practice changes stemming from the settlement are implemented in good faith.”
HomeServices buyer case reopened with Burnett evidence
Lutz v. HomeServices of America, a class-action commission lawsuit, was dismissed in July by Judge Michael K. Moore following the dismissal of the plaintiffs’ second amended complaint against defendants HomeServices of America and Douglas Elliman.
However, on August 5, an amended third complaint was filed by plaintiffs. On August 18, Judge Moore ordered the case reopened. The defendants’ request to extend their deadline to respond to Tuesday, September 9 was granted that same day.
In a 145-page amended lawsuit, plaintiffs cite 48 separate state-level claims, following the playbook of the buyer cases, which are following a different legal approach from the seller cases and relying on state-level consumer protection statutes.
Notably, the new complaint references evidence from the Burnett trial 52 times, after defendants who are named in both cases previously agreed to share evidence with the buyer plaintiffs, who are also suing NAR and other big brokerages in other districts.
Much of the evidence is redacted, but references depositions or testimony by former HomeServices CEO Gino Blefari and former NAR CEO Bob Goldberg. Redactions include evidence or information regarding why HomeServices supported certain NAR rules.
Other new evidence appears to relate to more recent industry occurrences or documents, including 2023 Berkshire Hathaway disclosures and Douglas Elliman sales agreements.
Compass-Zillow lawyers meet in recent hearing
The ongoing Compass/Zillow lawsuit will soon see depositions from top Zillow leadership: CEO Jeremy Wacksman, CFO Jeremy Hofmann and Chief Industry Development Officer Errol Samuelson. In a hearing held on Friday, August 15, 2025, the two parties deliberated on parameters of depositions overseen by Southern District of New York Judge Jeannette Vargas.
One of the main discussions of the hearing was whether Compass can also depose Zillow Co-Founder Lloyd Frink, with Compass claiming he has a “unique perspective.” Vargas ultimately ruled that Compass must first depose the aforementioned three witnesses and then make their case again about why they still need to depose Frink.
The immediate issue in the lawsuit is Compass’ filing for a preliminary injunction against Zillow’s new rules partially banning private listings from its platform, rules that are at the heart of the lawsuit. A three-day hearing on this injunction is currently set for November 2025.
Fannie Mae former employees file defamation lawsuit
On Tuesday, August 12, two civil lawsuits were filed on behalf of 41 former Fannie Mae employees against their employer, claiming that the employees’ dismissals in April constituted defamation. The lawsuits are both seeking $1 million in damages per plaintiff, for $82 million total across both cases.
Chairman and Federal Housing Finance Agency (FHFA) Director William Pulte and Fannie Mae President and CEO Priscilla Almodovar are both named as defendants.
The alleged “defamation” stems from Fannie Mae claiming that on April 8, 2025 that it had fired numerous employees for unethical conduct, including the facilitation of fraud and violations of the company’s charitable giving policies. Pulte reiterated such claims in a subsequent Fox News interview. The employees claim they were all in good standing.
eXp whistleblowers claim retaliatory action by company
Ashley Golladay, a former eXp freelance influencer, and Noelle Nielsen, a former employee, have filed separate lawsuits against the company. Golladay claimed she was threatened with firing if she cooperated in lawsuits against the company, and Nielsen said she was fired for reporting her supervisor Dave Conord (who is named in other eXp lawsuits) for sexually harassing female subordinates.
Nielsen’s filing includes an October 2020 memo to eXp leadership, documenting her claims of “fire worthy” offenses by eXp agents and influencers from sexual harassment to drug use. Many of the incidents center on former eXp agents Michael Bjorkman and David Golden, the defendants in lawsuits which claim they drugged and assaulted numerous women at different eXp events. eXp Founder Glenn Sanford has been accused of being aware of Bjorkman and Golden’s alleged actions and not intervening.
eXp has responded in court that Nielsen’s claims fall outside the statute of limitations and her independent contractor status means she is not afforded whistleblower protections. In an emailed statement, an eXp spokesperson said that “the claims are entirely without merit and we intend to defend the case vigorously. eXp is committed to maintaining a workplace and community that is inclusive, respectful and aligned with our core values.”
