Anywhere Real Estate Inc. and RE/MAX both announced on Nov. 20 that the companies have received preliminary court approval of their agreements to settle all claims asserted or which could have been asserted against them in the Burnett, Moehrl and Nosalek antitrust class action litigation.
Preliminary approval of the settlements, the terms of which were announced in October 2023, certifies the Settlement Class and authorizes commencement of the notice period to potential class members. On or before Dec. 22, 2023, parties must contact the court to schedule the final approval hearing, which the company still expects to occur in mid-2024.
Judge Stephen R. Bough, of Missouri’s Western District, who presided over the recent Burnett vs. NAR trial, approved the settlements on Nov. 19.
“The Court finds that the proposed Settlements with Anywhere and RE/MAX, as set forth in the Settlement Agreements, are fair, reasonable and adequate,” Bough wrote in his motion granting preliminary approval.
In the settlement, Anywhere agreed to provide monetary relief of $83.5 million, substantially in line with the company’s financial planning, as well as injunctive relief. The proposed settlement is not an admission of liability, nor does it concede or validate any of the claims asserted against Anywhere.
RE/MAX agreed to pay $55 million and make changes to business practices as part of the settlement. The proposed settlement would resolve on a nationwide basis all claims asserted against RE/MAX and includes releases for all U.S. RE/MAX independent regions, franchisees and agents. RE/MAX, LLC continues to deny the allegations made in the complaints and does not acknowledge any wrongdoing.
“I am pleased the court has granted Anywhere preliminary approval of our nationwide settlement,” said Ryan Schneider, Anywhere president and CEO. “Our efforts to resolve these claims remove future uncertainty and legal expense for Anywhere, our franchisees and affiliated agents as, together, we focus on serving homebuyers and sellers as they move to what’s next.”
The proposed settlement includes injunctive relief requiring practice changes in Anywhere Advisors, the company’s owned brokerage operations, which includes Coldwell Banker Realty, Corcoran and Sotheby’s International Realty, for a period of five years following final court approval. Anywhere has also agreed to recommend and encourage these same practice changes to its independently owned and operated franchise network across the Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Corcoran®, ERA® and Sotheby’s International Realty® brands.
RE/MAX has deposited 25% of the agreed-upon $55 million into a settlement fund; 25% is due within 10 business days after preliminary approval; and the remainder within 10 business days after final court approval.
“We are pleased with the court’s decision to grant preliminary approval of the settlement,” said Nick Bailey, president and CEO of RE/MAX. “This development signifies progress in our ongoing efforts and commitment to a resolution—it’s a positive step forward in bringing these cases closer to the finish line.”
If the settlement is granted final approval by the Missouri court, all U.S. RE/MAX affiliates, including franchisees and agents, will be protected from claims connected to the lawsuits and any similar claims. At this time, final approval is expected sometime next year. The business practice terms of the settlement must be implemented within six months of the final effective date.
Apart from the $55 million payment, RE/MAX does not expect the terms of the settlement agreement to have a material impact on its results of operations and cash flows.
