What is the class period for which the plaintiffs are seeking damages from Engel & Volkers?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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 plaintiffs in the consolidated class action lawsuit are seeking damages and/or restitution for the period from December 27, 2019, until the present. The lawsuit alleges an antitrust conspiracy related to broker compensation. The amount of damages sought is unspecified and will be determined at trial.
Engel & Volkers denies these allegations but has agreed to a settlement of $6.9 million, which will be paid into a qualified settlement fund. However, the settlement is contingent upon the resolution of appeals affirming final approval. This means that the actual payment and resolution of the case are still pending and subject to the outcome of these appeals.
For a prospective Engel & Volkers franchisee, this pending litigation and the potential financial implications of the settlement are important to consider. While Engel & Volkers has agreed to settle, the final outcome and the financial impact on the company are still uncertain due to the ongoing appeals. It is essential to stay informed about the resolution of these appeals and understand how they might affect the franchisor's financial stability and future operations.