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contentious dispute over settlement allegations has reached a boiling point, with plaintiffs accusing brokerages of engaging in a "reverse auction" to secure sweetheart deals. eXp Realty's recent filing detailing its negotiations with the plaintiffs in two commissions cases has only fueled the fire, as attorneys for home sellers in the Missouri case argue that the settlements were the result of a deliberate effort to avoid paying higher damages.

    The Gibson plaintiffs claim that eXp and Weichert settled on "the cheap" by resolving a less contentious case with weaker plaintiffs and counsel. In a February 5 filing, attorneys alleged that the brokerages deliberately chose to settle in the Hooper case to avoid paying more in damages. The plaintiffs argue that they filed their own case over a year ago but failed to advance it, instead repeatedly agreeing to stay the proceedings and offering significant "savings" to eXp and Weichert.

    The disparity between the settlements is stark: $34 million for eXp and $8.5 million for Weichert. The plaintiffs argue that these amounts are woefully inadequate, given eXp's cash reserves and Weichert's previous offer of $13 million. In its own filing, Weichert countered that the differences in settlement amounts are not as significant when considering attorney fees, which would reduce the Gibson offer by 33.3% compared to the Hooper deal.

    The dispute has its roots in eXp's October settlement announcement, which sparked an objection from plaintiffs accusing the firm of securing an "improper sweetheart deal." Judge Stephen Bough allowed further discovery into whether a reverse auction occurred, while the parties in the Hooper case have asked Judge Mark Cohen to preliminarily approve all settlements totaling $44.05 million.