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Real estate brokerage firm Compass agreed on Friday to pay $57.5 million to settle a class action lawsuit brought by U.S. home sellers. The antitrust lawsuit alleges that the company conspired with other brokers and industry groups to overcharge home sellers by billions of dollars.
The plaintiffs allege that real estate agents force home sellers to pay agents “artificially high” commissions, according to the Associated Press.
According to the Guardian, homeowners were required to include an offer of compensation to the buyer’s agent when listing their property for sale on the real estate industry’s database. Failure to include this offer may cause buyer’s agents to remove customers from the listing.
Related: Barbara Corcoran complains about NAR settlement: ‘It’s a scary time for real estate agents’
According to The Real Deal, Compass has not admitted any wrongdoing and said the settlement will not affect its operations.
“We chose to settle to minimize distractions and allow us to focus on serving our customers and their customers,” said an emailed statement obtained by the store. said Robert Refkin, CEO.
Compass is working with Anywhere Real Estate, Keller Williams, and RE/MAX to propose the settlement. Three other major brokerages have agreed to pay a total of $209 million, The Real Deal reported.
Related: ‘Everyone’s scared’: Barbara Corcoran says now is ‘the perfect time to buy a home’ — here’s why
Compass’ proposed settlement includes changes to its practices, such as creating training materials and improving communication with agents about fees, and is similar to other companies’ agreements, the report said.
The National Association of Realtors last week reached a $418 million class action settlement that eliminates sales commission rules for brokers and agents.
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