When did the Settlement Agreement receive final approval from the court regarding Engel & Volkers?
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 Agreement will become effective upon the resolution of those appeals affir
Source: Item 3 — LITIGATION (FDD pages 17–21)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, a Settlement Agreement in a case was granted final approval from the court on November 4, 2024. This agreement involved a consolidated class action complaint against Engel & Volkers and other defendants, alleging an antitrust conspiracy related to broker compensation. Engel & Volkers, while disputing the allegations, agreed to settle the case. The settlement includes a $6.9 million payment from Engel & Volkers into a qualified settlement fund.
However, the FDD also states that objectors to the settlement filed four separate appeals. Because of these appeals, the Settlement Agreement will only become effective upon the resolution of those appeals affirming final approval. The objector-appellants' briefs are currently due on April 21, 2025.
For a prospective Engel & Volkers franchisee, this means that while a settlement has been reached and initially approved, its final implementation is contingent on the outcome of these appeals. This could have implications for the brand's reputation and potential financial obligations, depending on the appellate court's decisions. It is important to monitor the progress and outcome of these appeals, as they could affect the stability and financial health of the Engel & Volkers franchise system.