Real estate brokerage Compass has agreed to pay $57.5 million in class-action lawsuit settlements from U.S. home sellers on Friday. The lawsuits allege that the company conspired with other brokerages and trade groups to overcharge home sellers by billions of dollars.
The plaintiffs claim that real estate brokers have been forcing home sellers to pay “artificially inflated” commissions to agents.
Homeowners had to include a compensation offer for buyer’s agents when listing properties for sale on real estate industry databases. Not including the offer could lead to buyer’s agents steering their clients away from the listing.
Compass did not admit to any wrongdoing and stated that the settlement would not affect its operation.
“The reason we have chosen to settle is so we can minimize distractions and focus on serving you and your clients,” said CEO Robert Reffkin in an emailed statement.
Compass joins Anywhere Real Estate, Keller Williams, and RE/MAX in proposing a settlement. The other three major brokerages agreed to pay a combined $209 million.
Compass’s proposed settlement includes practice changes like creating training materials and refining communication with agents about commissions, which are similar to the other companies’ agreements.
Last week, the National Association of Realtors finalized a $418 million class action settlement that removed sales commission rules for brokers and agents.
