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n a bid to quell allegations of impropriety, eXp Realty has defended its $34 million settlement with the Hooper plaintiffs, arguing that negotiations were aboveboard. The brokerage's stance comes as it faces scrutiny over whether it employed a reverse auction strategy to secure the deal.

    According to a February 4 filing in Georgia's Hooper commissions case, eXp disputes claims of a reverse auction, where a defendant seeks out the best deal by shopping around. Instead, the company asserts that the settlement was reached after attorneys for the Gibson/Umpa plaintiffs walked out of mediation, stating that $34 million in damages fell within a reasonable range.

    eXp's defense hinges on its assertion that it did not engage in a reverse auction, despite being a defendant in seven commissions lawsuits. The company chose to pursue settlements only in nationwide cases, preventing regional suits from escalating into class actions. During negotiations with the Hooper plaintiffs, eXp attorneys claim they never discussed the Gibson/Umpa case.

    In comparing its settlement to others reached in similar cases, eXp's attorneys point out that $34 million is a reasonable amount, considering it as a percentage of sales volume. According to T3 Sixty's Real Estate Almanac, eXp's settlement is slightly less than what Compass and Redfin paid, but more than the damages awarded to Realty One and Douglas Elliman. In terms of total dollars, eXp's proposed settlement ranks second among Gibson/Umpa defendants, behind only Compass' $57.5 million.

    eXp also highlights that attorney fees in the Hooper settlement are significantly lower at 20%, compared to the 33% cut taken by Gibson/Umpa attorneys. The company argues that this disparity means the class will ultimately benefit more from the eXp settlement than a comparable deal reached in Gibson.