The parties in the Hooper Commission lawsuit are seeking confirmation of the preliminary settlement
The Hooper plaintiffs and the broker defendants who reached the proposed settlement agreements are trying to make things official.
On Wednesday, the Hooper plaintiffs — along with the remaining defendants Mark Spain Real Estate, , North American Weichert and Atlanta Communities Real Estate Brokerage — filed a motion for preliminary approval of their settlements and preliminary certification of settlement class.
The four brokerage firms agreed to changes in business practices, as well as total payments of $44.05 million. Mark Spain Real Estate will pay $750,000 and Atlanta Communities Real Estate Brokerage $800,000 as part of the settlements.
According to the filing, “if approved, the settlements will bring meaningful relief to home sellers, as well as certainty and closure to the highly contentious and costly litigation with the Settlement Defendants.”
Settling parties assert that the proposed settlements, as well as the proposed settlement class, have received final approval and are consistent with the settlements in the claims.
“Like those settlements, the parties herein have negotiated proposed Settlements that resolve on a nationwide basis Plaintiffs' damages claims and negligence relief against the Consultant Defendants for their alleged anticompetitive practices in the residential real estate brokerage market,” the filing states.
“Proposed Settlements with eXp, Weichert, Atlanta Communities and Higher Tech (Mark Spain) provide for meaningful practice changes, cooperation in litigation against non-settling defendants and payments of $44.05 million.”
The motion states that settlements were reached “through extensive negotiations” lasting several months.
“The parties reached the Settlement after considering the risks and costs of litigation. Plaintiffs and class counsel believe that the claims asserted are well founded and that the evidence produced to date supports the claims,” the motion reads.
“Nevertheless, plaintiffs and attorneys recognize the myriad risks and procedural delays involved in such a complex case and believe that settlements provide significant benefits to Settlement Class Members. Settling Defendants deny the underlying allegations of the Complaint and any wrongdoing, but wish to avoid the time, expense, uncertainty and risks of further litigation.
If settlements are initially approved, settlement class members will have the opportunity to remove themselves from the settlements or challenge their approval.
Notices will be mailed to class members within 60 days of receipt of initial approval, and a final approval hearing will be scheduled at least 140 days after the entry for initial approval.
The move comes despite backlash from plaintiffs in other home seller commission lawsuits against the settlements. After eXp first filed its proposed settlement, it filed a motion to intervene, alleging that the nation's largest brokerage based on the number of trading parties used a “reverse auction” to settle with the Hooper plaintiffs. According to the Gibson plaintiffs, eXp negotiated with the Hooper plaintiffs and settled for less than it should have.
Despite the criticism, eXp isn't giving up without a fight. In subsequent filings, eXp argued that the settlement amount was fair and that nothing prevented it or any other defendant from settling with one class of plaintiffs against another.
