After winning a $1.7 billion verdict last October over claims that they paid inflated real estate commissions, Missouri-area home sellers asked for a final judgment of more than $4.7 billion against HomeServices, a unit of Warren Buffett’s Berkshire Hathaway (BRKa.N), opens new tab that is the sole defendant left in the case.
In addition to seeking triple damages as allowed under federal antitrust law, the filing, opens new tab in Kansas City, Missouri, federal court takes into account $626.5 million in settlements that the plaintiffs have reached with the other defendants in the case.
In the most significant settlement, the Chicago-based National Association of Realtors last week said it would pay $418 million to resolve the class action and institute sweeping reforms to industry commission practices.
Lawyers for HomeServices have asked U.S. District Judge Stephen Bough to scrap the verdict, calling it “misguided and excessive.”
HomeServices on Monday said the plaintiffs’ filing was expected and that it will continue to contest the verdict.
Michael Ketchmark, a lead attorney for the Missouri plaintiffs, said HomeServices “was the only defendant left standing, and we hope that they change their ways and quit defending a rule that the rest of the industry has abandoned.”
The 2019 lawsuit claimed the real estate association and major brokerages unlawfully coerced home sellers to pay a commission to the buyer’s agent in order to list their homes for sale.
The commission, which is shared between the buyer’s and seller’s agents, can run 5% to 6% of a home’s sale price.
Under the terms of the proposed settlement with the National Association of Realtors last week, the decades-old commission requirement would be scrapped, leaving buyers and sellers to negotiate their own agent fees.
Keller Williams, Re/Max and Anywhere have also settled with the Missouri plaintiffs. The defendants did not admit to any wrongdoing.
Source: https://www.reuters.com