Is Engel & Volkers a defendant in the pending litigation described in Item 3?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Don Gibson, Lauren Criss, John Meiners, and Daniel Umpa, individually and on behalf of all others similarly situated v. National Association of Realtors, Homeservices of America, Inc., BHH Affiliates, LLC, HSF Affiliates, LLC, The Long & Foster Companies, Inc., Berkshire Hathaway Energy Company, Keller Williams Realty, Inc., Compass, Inc., EXP Realty, LLC, Redfin Corporation, Weichert Realtors, Five D I, LLC d/b/a United Real Estate, Hanna Holdings, Inc., Douglas Elliman, Inc., Douglas Elliman Realty, LLC, At World Properties, LLC, The Real Brokerage, Inc., Real Broker, LLC, Realty One Group,
Inc.
Homesmart International, LLC, Engel & Volkers, Engel & Volkers Americas, Inc., Nexthome, Inc., Exit Realty Corp.
International, Exit Realty Corp USA, Windermere Real Estate Services Company, Inc.
Lyon Real Estate, William Raveis Real Estate, Inc., John L.
Scott Real Estate Affiliates, Inc., The Keyes Company, Illustrated Properties, LLC, Parks Pilkerton Village Real Estate, Crye-Leike Real Estate Services, Baird & Warner Real Estate, Inc., Rea Estate One Family of Companies, Lokation Real Estate LLC, Case No. 4:23-cv-00788-SRB (consolidation with 4:23-cv-00945-SRB) in 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.
Source: Item 3 — LITIGATION (FDD pages 17–21)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Engel & Volkers, Engel & Volkers Americas, Inc. are named as defendants in pending litigation. Specifically, they are defendants in the case of Don Gibson, Lauren Criss, John Meiners, and Daniel Umpa, individually and on behalf of all others similarly situated v. National Association of Realtors. This case, filed on April 23, 2024, alleges an antitrust conspiracy between the National Association of Realtors and residential real estate brokerages to inflate broker compensation at the expense of property sellers.
This type of litigation, especially a class action related to antitrust, can be costly and time-consuming for Engel & Volkers. Even if Engel & Volkers believes the claims are without merit, they will incur legal expenses to defend themselves. The outcome of the litigation is uncertain, and an unfavorable judgment could have a material adverse effect on Engel & Volkers' financial condition and operations.
Prospective franchisees should carefully consider the implications of this pending litigation. It is important to understand the nature of the claims, the potential financial exposure, and the impact the litigation could have on the Engel & Volkers system. It would be prudent to discuss this matter with Engel & Volkers' management team and legal counsel to gain a deeper understanding of the risks involved.