Fathom Realty is the latest brokerage to strike a settlement in the seller-filed commission lawsuits, agreeing to pay $2.95 million over the next two years, according to an SEC filing as the company seeks to ensure “our agents continue to have the opportunity to excel in their service to clients.”
“Fathom Realty was founded on the principle of delivering unparalleled support to our agents. We believe that this settlement represents the most prudent way forward, enabling our agents to focus on their clients without the distraction of prolonged litigation,” said Fathom Holdings CEO Marco Fregenal in a statement.
The Texas-based company has been named in at least two Burnett copycat lawsuits, and had previously requested a deadline extension from a Texas judge as it pursued “mediation” with plaintiffs. Like other brokerages that have settled, the company is not admitting any wrongdoing, with Fregenal adding that the choice to settle is also “not…an acknowledgment of the validity of any claims made against us.”
“We continue to assert that Fathom never participated in any conspiracy to inflate commissions and continue to believe that due to our flat-fee model, there was no incentive to join any such conspiracy,” he said.
Fathom becomes the latest of almost 20 brokerages that have chosen to settle the seller class-action claims, which began back in 2019. The company chose not to opt-into the settlement agreement struck by the National Association of REALTORS®, which would have required a much, much larger payment (around $30 million*).
According to the SEC filing, Fathom will pay $500,000 within five days of settlement approval, followed by another $500,000 in October of 2025 and the remaining $1.95 million by October of 2026. Like all other settlements, Fathom’s agreement must go through a formal legal approval process, with only three companies so far—RE/MAX, Anywhere and Keller Williams—getting that final sign-off by a judge (though that ruling is under appeal).
“Our unwavering commitment to providing excellent service to our agents, clients, and customers remains steadfast,” said Fregenal. “Entering into a settlement now has the benefits of avoiding ongoing legal fees and removing the demand on the executive team’s time, allowing us to focus on growing our business.”
*Based on RISMedia Power Broker data as it relates to the opt-in cost per the NAR settlement, which is 0.0025 x the average of a company’s last 4 years of sales volume.
