What relief are the plaintiffs seeking from Engel & Volkers in the antitrust lawsuit?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 antitrust class action suit are seeking several forms of relief. Filed on April 23, 2024, the suit alleges an antitrust conspiracy related to broker compensation.
The plaintiffs are seeking class action certification, which, if granted, would allow them to represent a larger group of individuals similarly affected. In terms of monetary relief, the plaintiffs are pursuing damages and/or restitution for the period from December 27, 2019, to the present, although the specific amount is unspecified and will be determined at trial.
Beyond monetary compensation, the plaintiffs are also seeking injunctive and equitable relief. This type of relief typically involves court orders that compel Engel & Volkers and other defendants to change specific practices or policies that are deemed anticompetitive. This could potentially impact how Engel & Volkers franchisees operate, particularly in relation to adhering to rules set by the National Association of Realtors (NAR) and other listing services.