Douglas Elliman settles nationwide commission class actions for $7.75M guaranteed plus $10M contingent

Douglas Elliman Inc.

Settles Gibson and Umpa class actions on behalf of sellers regarding real estate brokerage fees nationwide.
Guaranteed payment of $7.75M due within 30 business days of preliminary court approval, expected Q2 2024.
Up to $5M contingent payment due by Dec 2025 if cash balance >= $40M; additional $5M by Dec 2026.
Agreed to business practice changes: disclose commissions are negotiable, no mandatory compensation offers, training.
Settlement is not an admission of liability; company denies allegations; subject to final court approval.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Douglas Elliman Inc. entered into Settlement Agreement with the settlement class valued at $7.75 million within 30 business days of preliminary approval, as well as two $5 million contingent (effective 2024-04-26).

Action: entry
Agreement: settlement
Counterparty: the settlement class
Value: $7.75 million within 30 business days of preliminary approval, as well as two $5 million contingent
Effective: 2024-04-26

Exact text from the filing

On April 26, 2024, Douglas Elliman Inc. (the “Company”) and its subsidiary, Douglas Elliman Realty, LLC (collectively, “Douglas Elliman”), entered into a settlement agreement (the “Settlement Agreement”) to resolve on a nationwide basis the pending class action litigations, Gibson v. NAR, No. 4:23-cv-00788-SRB (W.D. Mo.) and Umpa v. NAR, 4:23-cv-00945-SRB (W.D. Mo.) (the “Lawsuits”).

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Source: SEC EDGAR

accession 0001193125-24-120153

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