Berkshire Hathaway's real estate brokerage HomeServices of America has reached a settlement of $250 million in a lawsuit concerning its commission fees, according to the plaintiffs involved in the litigation.
Home sellers initiated the lawsuit against HomeServices, claiming that the company participated in a scheme that compelled sellers to pay excessively high agent commissions.
Plaintiff attorney Benjamin D. Brown, managing partner of Cohen Milstein Sellers & Toll and co-chair of its Antitrust practice, emphasized the importance of the settlement. "This marks a significant progress for American home sellers burdened with billions in unnecessary commission expenses," Brown stated. "It moves us closer to concluding this protracted case surrounding the widespread brokers' commission scheme."
In response, HomeServices' Executive Vice President Chris Kelly told Business Insider that the decision to settle was made to "avoid the uncertainties of continued appeals and litigation."
Kelly affirmed, "Looking ahead, we are committed to maintaining ethical standards, upholding industry integrity, and providing value. We remain dedicated to supporting our agents in building careers that make a positive impact on the communities and consumers they serve."
Additionally, this group of home sellers has also pursued claims against other brokerages, achieving substantial settlements, including a notable $418 million from the National Association of Realtors, which has significantly impacted the real estate industry.
