Douglas Elliman in $7.75M settlement pact over ‘brokerage commission litigation’

Douglas Elliman announced it has entered into a settlement agreement to resolve on a nationwide basis the pending class action litigation on behalf of sellers relating to real estate brokerage fees in the Gibson and Umpa cases pending in the Western District of Missouri. Under the terms of the settlement agreement, Douglas Elliman has agreed to pay $7.75M within 30 business days of preliminary approval of the settlement by the Court and up to two additional $5 M contingent payments between December 31, 2025 and December 31, 2027…. “Our global network of leading agents and luxury brand continue to position Douglas Elliman for future success as real estate markets stabilize. We remain confident our differentiated business position will enable continued growth over the long term.” As part of the settlement agreement, Douglas Elliman has agreed to make certain changes in its underlying business practices. These changes are consistent with the business changes Douglas Elliman’s competitors agreed to make in their respective settlements of similar litigation, many of which were already longstanding Douglas Elliman policies. For additional information, the Company has filed a Current Report on Form 8-K with the Securities and Exchange Commission today that includes the settlement agreement. The settlement agreement resolves all claims on a nationwide basis in the Actions and similar claims in other lawsuits alleging claims on behalf of sellers against Douglas Elliman and its subsidiaries and releases the Company, its subsidiaries and affiliated agents from such claims….The settlement agreement remains subject to preliminary and final court approval and will become effective upon final approval by the court.