Keller Williams Realty has reached a $20 million settlement to resolve the Batton class-action lawsuit. This lawsuit accused Keller Williams, along with other major real estate entities, of conspiring to inflate home prices by fixing agent commissions. This marks the first settlement in the ongoing litigation.
Key Takeaways
- Keller Williams is the first defendant to settle in the Batton class-action lawsuit.
- The proposed settlement amounts to $20 million.
- The lawsuit alleges collusion to fix agent commissions and inflate home prices.
- The settlement must be approved by a federal judge.
Details of the Settlement
The preliminary settlement, disclosed in federal court in Chicago, aims to release Keller Williams, its franchisees, affiliated agents, and teams from the antitrust litigation. The plaintiffs argued that the practice of requiring sellers to pay buyer-broker commissions artificially inflated these fees. This rule was previously addressed and removed as part of the 2024 Sitzer Burnett class-action lawsuit settlement, which involved the National Association of REALTORS® (NAR) agreeing to pay $418 million and amend its rules.
Company and NAR Responses
A spokesperson for Keller Williams stated the company is "pleased to reach a nationwide settlement" that provides certainty for its network. Keller Williams President and CEO Chris Czarnecki explained the decision to settle was made to "eliminate uncertainty" and allow agents to focus on serving clients without distraction.
The National Association of REALTORS® acknowledged Keller Williams’ decision to settle, stating they "respect Keller Williams’ right to settle these claims." NAR affirmed its continued engagement in the joint defense group and its commitment to defending its rules, while also pursuing "all potential resolutions" in the best interest of its members, the industry, and consumers.