In which court is the Burnett case against Remax pending?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
ification as to both classes. On April 12, 2023, RE/MAX, LLC petitioned the United States Court of Appeals for the Seventh Circuit for permission to appeal the Court's class certification decision. On May 24, 2023, the Seventh Circuit denied the petition.
In one of the Moehrl-related antitrust litigations, filed by plaintiffs Scott and Rhonda Burnett and others in the Western District of Missouri (the "Burnett Action"), the court on April 22, 2022 granted plaintiffs' motion for class certification and a trial date was set for October 2023. On September 15, 2023, RE/MAX, LLC entered into a Settlement Term Sheet (the "Settlement") to resolve the Burnett Action and Moehrl Action. The proposed Settlement would resolve all claims set forth in the Burnett Action and Moehrl Action, as well as all similar claims on a nationwide basis against RE/MAX, LLC (collectively, the "Nationwide Claims") and would release RE/MAX, LLC and RE/MAX Holdings, Inc., their subsidiaries and affiliates, and RE/MAX sub-franchisors, franchisees and their sales associates in the United States from the Nationwide Claims. By the terms of the proposed Settlement, RE/MAX, LLC agreed to make certain changes to its business practices and to pay a total settlement amount of $55 million (the "Settlement Amount") into a qualified settlement escrow fund (the "Settlement Fund"). The Settlement Amount was deposited into the Settlement Fund in three installments per the Settlement, of which 25% (or $13.8 million) was deposited during the third quarter of 2023, 25% (or $13.8 million) was deposited during the fourth quarter of 2023, and the final 50% was deposited during the second quarter of 2024 after final court approval of the Settlement Agreement (as defined below). RE/MAX, LLC used available cash to pay the Settlement Amount.
The Settlement and any actions taken to carry out the Settlement are not an admission or concession of liability, or of the validity of any claim, defense, or point of fact or law on the part of any party. RE/MAX, LLC continues to deny the material allegations of the complaints in the Burnett Action, the Moehrl Action, the Moehrl-related antitrust litigations, and the Copycat Cases (as defined below). RE/MAX, LLC entered into the Settlement after considering the risks and costs of continuing the litigation. On September 19,
2023, the Burnett court stayed deadlines as to RE/MAX, LLC. On October 5, 2023, RE/MAX, LLC entered into a definitive settlement agreement (the "Settlement Agreement") containin
Source: Item 3 — LITIGATION (FDD pages 21–29)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the Burnett Action, one of the Moehrl-related antitrust litigations, was filed by Scott and Rhonda Burnett and others. The case is pending in the United States District Court for the Western District of Missouri.
Remax entered into a Settlement Term Sheet on September 15, 2023, to resolve the Burnett Action and Moehrl Action. The proposed settlement aimed to resolve all claims set forth in both actions, as well as similar claims on a nationwide basis against Remax, LLC. This settlement would release Remax, LLC, its subsidiaries and affiliates, Remax sub-franchisors, franchisees, and their sales associates in the United States from these nationwide claims.
Under the terms of the proposed settlement, Remax, LLC agreed to make certain changes to its business practices and pay a total settlement amount of $55 million into a qualified settlement escrow fund. This amount was deposited in three installments, with 25% ($13.8 million) deposited in both the third and fourth quarters of 2023, and the final 50% deposited in the second quarter of 2024 after final court approval of the Settlement Agreement. The court granted final approval of the Settlement Agreement on May 9, 2024.