K
eller Williams has agreed to settle class action lawsuits over changes to its profit-share program for former agents. The Austin-based brokerage finalized negotiations with the plaintiffs earlier this month, according to documents filed in a federal court in Nevada. The deal applies to all cases brought by Humphrey, Farrington & McClain, but the terms of the agreement remain confidential.

    A separate lawsuit filed by Louis and Deborah Ronayne was voluntarily dismissed last month, but the claims can be refiled. Keller Williams has declined to comment on the settlement. Former agents began suing in March for breach of contract and unjust enrichment after the brokerage voted to slash profit shares for those who left the firm for a competitor.

    The changes were made in August, when Keller Williams' leadership council retroactively applied new distribution policies, reducing the amount of profit share from 100% to 5% for vested agents who joined before April 2020 and later moved to a competitor. Agents are considered vested after at least seven consecutive years with the franchisor.

    Keller Williams had sent letters to vested agents in December, notifying them of the change and allowing six months to rejoin or lose most of their profit share. The company claimed that the change would not affect agents who retire or leave the real estate business, but instead enrich affiliated agents, investors, brokers, and staff.