When did Engel & Volkers agree to settle the antitrust case?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
the United States District Court for the Western District of Missouri, Western Division. On April 23, 2024 plaintiffs filed a consolidated class action complaint against us and the above named defendants claiming an antitrust conspiracy by and between the National Association of Realtors® ("NAR") and residential real estate brokerages to increase broker compensation at the expense of property sellers. Plaintiffs are alleging that a NAR rule that requires brokers to make a blanket, non-negotiable offer of buyer broker compensation when listing a property, results in increased cost to sellers, artificially inflates buyer broker's compensation and incentivizes buyer brokers to steer buyers toward higher commissioned properties, not disclosing buyer broker compensation to buyers while curtailing competition, all in violation of federal antitrust law, state antitrust law and state deceptive trade practices and fair trade practices laws. Similarly, Plaintiffs allege that the rules of other associations and listing services contribute to these anticompetitive effects on commissions. Plaintiffs further allege that certain defendants, including us, use their agreements with franchisees to require adherence to the NAR and other rules in violation of federal antitrust law. Plaintiffs seek class action certification. Plaintiffs further seek injunctive and equitable relief and damages and/or restitution for the class period of December 27, 2019 until present in an unspecified amount to be proved at trial. Although we vigorously dispute Plaintiffs' allegations, we agreed to settle the case on June 18, 2024 and entered into a settlement agreement dated July 12, 2024 ("Settlement Agreement") that includes a total monetary settlement amount of $6.9 million to be paid by us into the qualified settlement fund. The Settlement Agreement received final approval from the court on November 4, 2024. Objectors to the settlement filed four separate appeals: Don Gibson, et al v. Monty March, 24-3478 (8th Cir.); Don Gibson, et al v. Robert Friedman, et al, 24-3481 (8th Cir.); Don Gibson, et al v. James Mullis, 24-3473 (8th Cir.); and Don Gibson, et al v. Benny Cheatham, et al, 24-3564 (8th Cir.). The Settlement Agree
Source: Item 3 — LITIGATION (FDD pages 17–21)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the company agreed to settle an antitrust case on June 18, 2024. The formal settlement agreement was dated July 12, 2024. This agreement includes Engel & Volkers paying a total monetary settlement of $6.9 million into a qualified settlement fund. The court granted final approval for the settlement on November 4, 2024.
However, the settlement's effectiveness is contingent upon the resolution of four separate appeals affirming the final approval. These appeals are titled Don Gibson, et al v. Monty March, 24-3478 (8th Cir.); Don Gibson, et al v. Robert Friedman, et al, 24-3481 (8th Cir.); Don Gibson, et al v. James Mullis, 24-3473 (8th Cir.); and Don Gibson, et al v. Benny Cheatham, et al, 24-3564 (8th Cir.).
For a prospective Engel & Volkers franchisee, this information highlights the importance of understanding the legal landscape and potential liabilities associated with franchise operations. The fact that Engel & Volkers is involved in antitrust litigation, and has agreed to a $6.9 million settlement, indicates a significant legal and financial risk. The appeals process adds further uncertainty, as the final cost and implications for franchisees could change depending on the outcome. Franchisees should seek clarification from Engel & Volkers regarding the status of these appeals and potential impact on their business.
It is also important to note that the objector-appellants' briefs are due on April 21, 2025. This timeline suggests that the resolution of the appeals, and thus the finalization of the settlement, is expected sometime after this date. Prospective franchisees should closely monitor these developments and assess the potential financial and operational impacts on their investment.