realestate

Court declines to halt eXp Realty lawsuit due to company's questionable actions

Judge rules discovery can proceed on whether eXp-Weichert deals were a "reverse auction".

J
udge Stephen Bough denied a request to pause proceedings in eXp's commissions litigation, calling the brokerage's deal with another set of plaintiffs "questionable behavior." The judge said discovery could continue into whether deals made by eXp and Weichert with the Hooper plaintiffs constituted a "reverse auction," where companies seek out plaintiffs for favorable deals.

    Bough wrote that granting a stay would not serve justice, given the lack of financial considerations and quick settlement in the Hooper case. He noted it's within his power to continue the case and investigate whether a reverse auction occurred.

    eXp said they mediated with the Gibson plaintiffs in April but reached a settlement with the Hooper plaintiffs in Georgia after failing to agree on terms with the Gibson plaintiffs in Missouri. The Gibson plaintiffs argued that eXp used a "reverse auction" by shopping around for a better deal, rather than continuing negotiations with them.

    The $34 million settlement with the Hooper plaintiffs was reached without considering eXp's financials, according to attorneys for the Gibson plaintiffs. Bough also ordered discovery to continue in Weichert Realtors' settlement, which was reached under similar unclear circumstances.

eXp Realty executives face scrutiny as court denies lawsuit stay request.