Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
eXp, Weichert get settlement sign-off in copycat lawsuit
A federal judge granted final approval to a series of commission-related antitrust settlements involving several real estate brokerages, bringing an end to the cases after a prolonged fight between two groups of plaintiffs and accusations that the companies negotiated “sweetheart” deals.
In a 69-page order filed March 31, Judge Mark H. Cohen approved the settlement agreements between a nationwide class of homesellers and four brokerages—eXp World Holdings, Weichert of North America, Mark Spain Real Estate and Atlanta Communities Real Estate Brokerage.
The settling defendants have agreed to pay, collectively, $44.05 million into a settlement fund, with eXp contributing $34 million, Weichert contributing $8.5 million, Atlanta Communities contributing $800,000 and Higher Tech contributing $750,000.
In a statement to RISMedia, a spokesperson for eXp said they are pleased that the court has granted final approval of their settlement agreement and officially certified the settlement class.
“This milestone represents a significant step forward in resolving these industry-wide legal challenges and providing certainty for our agents, their clients and our shareholders,” they said. “We are grateful for the court’s thorough review of the record and its finding that the settlement is fair, reasonable and adequate.”
Hardy case thrown out; major win for NAR, MLSs
A federal judge threw out the lawsuit filed by two brokers and an agent in Michigan—Douglas Hardy, Glenn Champion and Dylan Trent—who had claimed that rules restricting MLS access violated federal and state antitrust laws.
The lawsuit, filed in August 2024, alleged that local and state boards of Realtors®, along with the National Association of Realtors® and the local MLS, RealComp II, all conspired to create rules and form an illegal monopoly, forcing real estate professionals to pay dues to access the MLS.
In his ruling, Judge Jonathan Grey of the Eastern District of Michigan wrote that at least some of the plaintiffs’ claims regarding the MLS are “misleading and contradicted by reality,” and the allegations that MLS membership is mandatory are “insufficient to support a viable claim under (federal antitrust law).”
New arguments in Zillow RESPA suit
As Zillow seeks to have the lawsuit thrown out, former customers say the portal is legally responsible for systems they claim motivated agents to work against buyer’s best interests.
The case makes two primary allegations: That Zillow unlawfully steers buyers toward its home loan programs, and that the practice directing buyer inquiries to agents who paid for leads is “deceptive” and violates consumer protection statutes. Zillow has denied these claims.
“Zillow has created a coordinated, vertically integrated system through which it leverages its dominance as the nation’s primary online real estate gatekeeper to control, condition, and monetize residential transactions at multiple stages, all to consumers’ detriment,” the plaintiffs filing says.
Massachusetts broker sentenced up to 3 years for $11.6M escrow theft
Stephen Webster, the former owner of Success! Real Estate in Marshfield, Massachusetts, who diverted $11 million in escrow funds for personal expenses, was sentenced to up to three years in prison by a Massachusetts judge.
Plymouth Superior Judge Daniel O’Shea sentenced Webster to two to three years in state prison, followed by five years of probation.
Pleading guilty, his company abruptly shut down in December 2024 amid an embezzlement investigation. The investigation determined Webster used the funds to pay credit card debt, business loans and personal expenses, including monthly rent of $10,000 and gambling-related expenditures in Massachusetts and Florida.
