T
he terms of the agreement, which is subject to judicial approval, remain undisclosed. The settlement fund for Sitzer, Moehrl, and Gibson is nearing $1 billion. The fast-growing franchise company NextHome has reached an agreement to settle with home sellers in an early commissions copycat case. The company has more than 600 offices nationally and has agreed to terms with plaintiffs in the Gibson/Umpa class action lawsuit. The details of the settlement remain confidential.

    James Dwiggins is co-founder and CEO of NextHome, and he is also an influential voice in the industry, particularly around compensation and legal challenges in residential real estate.

    The case in question is the Gibson lawsuit, which was filed shortly after the jury reached its verdict in the landmark Sitzer/Burnett trial almost a year ago. The class includes all home sellers who used a listing agent associated with one of the seven brokerage companies named as defendants between October 2019 and October 2023. The Gibson lawsuit was later combined with Umpa, another lawsuit filed in the same court.

    The settlement details have not been disclosed, but plaintiffs intend to file documents for preliminary and final approval. The settlement funds across the Sitzer/Burnett, Moehrl, and Gibson cases total more than $980 million. As of September 11th, NAR and 15 brokerage companies have publicly announced settlements.

    The settlement has been finalized but is currently under appeal. Briefs from those appealing are due on September 25th.

    Preliminary approval or recently announced settlements include:

    - National Association of Realtors: $418 million

    - HomeServices of America: $250 million

    - Compass: $57.5 million

    - Real Brokerage: $9.25 million

    - Realty One: $5 million

    - HomeSmart: $4.7 million

    - @properties: $6.65 million

    - Douglas Elliman: Up to $17.75 million

    - Redfin: $9.25 million

    - Engel & Völkers: $6.9 million

    - United Real Estate: $3.75 million

    - The Keyes Company: Not immediately disclosed

    - NextHome: Not immediately disclosed

    The final approval hearings for NAR and HomeServices deals, which are the two largest settlements accounting for more than two-thirds of the total fund to date, are scheduled for November 26th. The remaining brokerages (excluding NextHome and Keyes, which settled on September 3rd) will have their final approval hearing on October 31st. The hearings for NextHome and Keyes will be determined after their agreements receive preliminary approval.