What is the significance of the Seventh Circuit in the lawsuit involving Corcoran?

According to Corcoran's 2025 Franchise Disclosure Document, the United States Court of Appeals for the Seventh Circuit played a role in a class action lawsuit involving Anywhere (Corcoran's parent company) and other defendants. Specifically, Anywhere and the other defendants filed a petition with the Seventh Circuit to appeal the decision on class certification. However, the Seventh Circuit denied this petition on May 24, 2023.

This denial is significant because it meant that the class action lawsuit would proceed with the classes as they were certified by the lower court. This could potentially increase Corcoran's liability and legal expenses related to the lawsuit. The class certification defined two classes: a damages class covering sellers of residential real estate who paid commissions to brokerages affiliated with the defendant franchisors between March 6, 2015, and December 21, 2020, in specific MLSs, and an injunctive class covering current and future sellers in those MLSs.

It's important to note that Anywhere (Corcoran's parent company) later entered into a nationwide settlement agreement for $83.5 million with the plaintiffs in this case. While this settlement aimed to resolve the claims against Anywhere, the final approval of the settlement has been appealed and is currently pending in the Eighth Circuit Court of Appeals. Therefore, the legal proceedings and potential financial implications for Corcoran and its franchisees are still ongoing.