Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
Trial date set for Gibson suit and final approval granted for five brokerages
The United States District Court for the Western District of Missouri has set trial to begin on May 1, 2028. It has been scheduled for three weeks. The pretrial conference has been scheduled for April 6, 2028.
The main Burnett copycat case, the settlement classes include sellers nationwide who listed homes on a multiple listing service during specified time periods and paid commissions in connection with those sales. A majority of the defendants have already settled.
Last week, the court granted final approval to settlements for five brokerages—Hanna Holdings, William Raveis Real Estate, EXIT Realty, Windermere Real Estate Services Company and William L. Lyon and Associates, a firm that now operates under the Windermere brand.
The total settlement fund sits at over $1 billion, and the nationwide class consists of nearly 2.7 million members.
Federal judge denies Compass’s request to block Zillow’s rules
In a heavily awaited ruling, Judge Jeannette Vargas ruled against Compass last week, denying its request for a preliminary injunction against Zillow’s new listing rules (what it calls “Listing Access Standards”), allowing the portal’s new rules to remain in effect while the broader antitrust lawsuit plays out.
In a 50-page filing issued late Friday morning, Vargas concluded that Compass failed to demonstrate a likelihood of success on the merits to justify emergency relief.
“Since Compass seeks a mandatory injunction, Compass must establish a clear showing of success on the merits,” she wrote. “On the current evidentiary record, Compass fails to satisfy even the lesser…standard.”
Compass CEO Robert Reffkin told RISMedia that this decision “is not a loss, and our lawsuit continues forward.”
In a statement, Zillow called the lawsuit “baseless” and the ruling “a clear victory not just for Zillow, but for consumers, agents, brokerages and the real estate industry at large.”
Compass sued Zillow last year, alleging violations of the Sherman Act after Zillow announced that it would no longer display listings that are publicly marketed outside the MLS for more than one business day. The policy directly impacts Compass’s 3-Phased Marketing strategy, which allows listings to be marketed privately or as “Coming Soon” before appearing on the MLS.
Keller Williams reaches settlement in Batton suit
On Feb. 2, Keller Williams became the first defendant in the largest buyer case (known as Batton) to settle the class-action lawsuit brought in the U.S. District Court for the Northern District of Illinois.
The brokerage will pay $20 million to settle and has agreed to provide cooperation in the form of deposition testimony, trial testimony and documents as litigation continues against remaining defendants including the National Association of Realtors® (NAR), Anywhere Real Estate and REMAX.
“We are the first defendant to resolve this litigation with the goal of eliminating uncertainty for our franchisees and agents,” Keller Williams CEO Chris Czarnecki told agents in an email. “We came to the decision to settle with careful consideration for the immediate and long-term well-being of our franchisees and agents, and the business model they depend on.”
A spokesperson for (NAR) said that this development does not directly affect NAR’s position in the Batton litigation.
“We respect Keller Williams’ right to settle these claims and anticipated the possibility they would do so. NAR remains actively engaged in the Batton joint defense group, and we continue to defend our rules where questioned,” the spokesperson added. “Given recent history and the dynamics of this case, NAR continues to pursue all potential resolutions, both non-litigation and litigation, to reach a result that is in the best interest of our members, the industry and consumers.”
Class-action suit filed against Rocket Mortgage
A class-action lawsuit was filed Feb.1 in federal court in Ohio against Nationstar Mortgage LLC (operating as Rocket Mortgage), alleging the company charged nearly 788,000 borrowers improper fees totaling more than $15.6 million.
The lawsuit centers on a $20 charge that borrowers claim should never have appeared on their final loan statements. According to the plaintiffs, borrowers in 36 jurisdictions were charged this fee when paying off their mortgages, despite state laws prohibiting lenders from charging fees beyond actual government recording costs.
The plaintiffs are seeking class certification, damages, restitution and an accounting of all fees collected.
NWMLS cites Compass v. Zillow ruling in court documents
On Feb. 6, Northwest MLS (NWMLS) filed a Notice of Supplemental Authority citing Compass v. Zillow—which was ruled on just hours before—in support of its pending motion to dismiss.
Compass had sued NWMLS for its policy restricting certain private listings, with similar accusations to those the brokerage had leveled at Zillow.
The swift citation demonstrates close monitoring of parallel proceedings as the nationwide debate over these policies plays out.
