Keller Williams Realty has reached a $20 million settlement to resolve the Batton class-action lawsuit, which accused the real estate giant, along with other major industry players, of conspiring to inflate agent commissions and home prices. This marks the first defendant to settle in the ongoing litigation.
Key Takeaways
- Keller Williams is the first defendant to settle in the Batton class-action lawsuit.
- The proposed $20 million settlement aims to release Keller Williams, its franchisees, and affiliated agents from antitrust claims.
- The lawsuit alleges a conspiracy to fix agent commissions and inflate home prices.
- A previous settlement in the Sitzer Burnett lawsuit in 2024 led to rule changes regarding buyer agent commissions.
The Settlement Details
Keller Williams has agreed to a $20 million settlement in the Batton home-buyer commission lawsuit. The preliminary agreement, disclosed in federal court in Chicago, must still receive judicial approval. This settlement aims to release Keller Williams, its franchisees, and affiliated agents from claims brought by home buyers who purchased residential real estate listed on a Multiple Listing Service (MLS) during the specified period.
Background of the Lawsuit
The Batton lawsuit, along with others like the Sitzer Burnett case, centers on the practice of sellers paying buyer-broker commissions. Plaintiffs argue that this rule artificially inflated buyer agent commissions. A significant development occurred in 2024 with the Sitzer Burnett class-action lawsuit settlement, where the National Association of REALTORS® (NAR) agreed to pay $418 million and amend its rules. Key changes from that settlement included removing commission promises from MLS listings and requiring buyers to sign agreements with their agents before showings.
Industry Reactions
In response to the Keller Williams settlement, NAR stated that it would continue to pursue all legal options to achieve an outcome that best serves its members, the industry, and consumers. While respecting Keller Williams’ decision to settle, NAR remains actively involved in the joint defense group and continues to defend its rules. The association indicated it is exploring all potential resolutions, both litigated and non-litigated, to reach a favorable result.
Keller Williams’ Rationale
Chris Czarnecki, President and CEO of Keller Williams, communicated to market leaders that the decision to settle was made to provide certainty for its agents and franchisees. He emphasized that the settlement allows the company and its network to focus on their core mission of delivering value in the real estate market without the distraction of ongoing litigation.