What is the role of MLSs in the allegations against Corcoran?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
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B. Other Pending Litigation.
- Christopher Moehrl, individually and on behalf of others similarly situated v. The National Association of Realtors, Realogy Holdings Corp., HomeServices of America, Inc., Re/Max Holdings, Inc., and Keller Williams Realty, Inc., (Case No. 1:19-cv-01610, United States District Court for the Northern District of Illinois). On March 6, 2019, plaintiff, Christopher Moehrl, filed a putative class action against Anywhere and the other named defendants. Plaintiff claims that the defendants engaged in a continuing contract, combination, or conspiracy to unreasonably restrain trade and commerce in violation of Section 1 of the Sherman Act, because defendant The National Association of Realtors ("NAR"), established mandatory anticompetitive policies for the MLSs and its member brokers regarding the setting and payment of the buyer broker commission. Plaintiff further alleges that the defendant franchisors conspired with NAR by requiring their respective franchisees to comply with NAR's policies and Code of Ethics. Plaintiff seeks a permanent injunction enjoining the defendants from requiring sellers to pay the buyer broker or to otherwise restrict competition among buyer brokers, an award of damages and/or restitution, including treble damages with joint and several liability, attorneys' fees and costs of suit. On April 15, 2019, a related case was filed in the same district against the same defendants, making similar claims and seeking similar relief on behalf of the same potential class. The related case is captioned Sawbill Strategic, Inc. v. The National Association of Realtors, HomeServices of America, Inc., Keller Williams Realty, Inc., Realogy Holdings Corp., and Re/Max Holdings, Inc. (Case No. 1:19-cv-02544, United States District Court for the Northern District of Illinois). On May 17, 2019, Anywhere and the other defendants filed Motions to Dismiss the Moehrl matter. On June 14, 2019, plaintiffs in the Moehrl and Sawbill matters filed a Consolidated Amended Class Action Complaint, which consolidated the two Illinois actions and added certain additional plaintiffs and defendants. On August 9, 2019, Anywhere and the other defendants filed Motions to Dismiss the consolidated complaint and on October 2, 2020, the Court denied NAR's and other
defendants' motions to dismiss, and the parties began conducting discovery. In a separate Department of Justice ("DOJ") investigation into NAR, on November 19, 2020, the DOJ simultaneously filed a complaint against NAR and a proposed equitable settlement that requires NAR to repeal and modify certain of its rules and policies, including certain MLS rules and policies that are the subject of plaintiffs' allegations. The defendant franchisors are not the subject of the DOJ investigation or defendants in the DOJ complaint. Plaintiffs' motion for class certification was filed on February 23, 2022. Defendants filed their opposition on June 14, 2022, plaintiffs filed their reply on August 22, 2022, and on March 29, 2023, the Court granted the motion for class certification with two classes certified, a damages class and an injunctive class. The damages class covers sellers of residential real estate (with certain exemptions) who paid a commission to a brokerage affiliated with any franchisor defendant from March 6, 2015 through December 21, 2020 in 20 MLSs in various parts of the country that do not overlap with the Burnett MLSs and that include approximately five of the country's ten largest MLSs, estimated to cover approximately 3.5 million transactions. The injunctive class covers current and future sellers of residential real estate (with certain exceptions) who are presently listing or will in the future list their home for sale in one of the 20 MLSs. Fact discovery was completed on December 9, 2022.
Source: Item 3 — LITIGATION (FDD pages 18–25)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, Multiple Listing Services (MLSs) are central to several lawsuits detailed in Item 3, concerning alleged anti-competitive practices within the real estate industry.
Specifically, in the Christopher Moehrl case, the allegations involve the National Association of Realtors (NAR) establishing mandatory anti-competitive policies for MLSs and their member brokers regarding buyer broker commissions. The plaintiffs claim that Corcoran, along with other franchisors, conspired with NAR by requiring franchisees to comply with these policies and NAR's Code of Ethics. This suggests Corcoran franchisees could be bound by NAR rules related to MLS operations, potentially impacting how buyer broker commissions are set and paid.
In the Batton case, the plaintiff alleges a nationwide class including real estate transactions listed on all MLSs controlled by NAR rather than a specific subset of MLSs. In the Homie Technology, Inc. case, the lawsuit alleges a conspiracy involving the creation of a market structure that facilitated boycotts of new entrants by real estate brokerages in the Wasatch Front Regional Multiple Listing Service. The plaintiff alleges that the conspiracy is contained in NAR rules that govern access to the Wasatch MLS, which allegedly creates substantial barriers to competition and that Corcoran played an active role in NAR by requiring its branded franchisees and company owned brokerages to join and implement NAR's anticompetitive rules.
In the Jennifer Nosalek case, the plaintiffs object to the alleged policies and rules of an MLS that is owned by realtors, including in part by one of Corcoran's company owned brokerages. These cases highlight the potential risks and legal challenges Corcoran franchisees might face due to their affiliation with NAR and participation in MLS systems, particularly concerning commission structures and compliance with antitrust laws.