What was the outcome of the plaintiffs' motion for class certification in the Burnett Action related to Remax?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
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 was set for October 2023.
On September 15, 2023, the Company entered into a Settlement Term Sheet (the "Settlement") with plaintiffs in the Burnett Action and Moehrl Action. The Settlement would resolve all claims set forth in the Burnett Action and Moehrl
On September 19, 2023, the Burnett court stayed deadlines as to RE/MAX, LLC. On October 5, 2023, the Company entered into a definitive settlement agreement (the "Settlement Agreement") containing substantially the same material terms and conditions as provided in the Settlement. On November 20, 2023, the court granted preliminary approval of the Settlement Agreement and on May 9, 2024, the court granted final approval. Appeals were subsequently filed, including by one of the Batton plaintiffs. The Settlement Agreement will become effective if the order approving the Settlement Agreement is affirmed at the conclusion of the appeals process.
On October 31, 2023, after a two-week trial, the jury in the Burnett Action found an unlawful conspiracy existed and awarded approximately $1.8 billion against the three remaining defendants NAR, Keller Williams and HSA. Due to the Settlement Agreement, the Company did not present a defense or participate in the trial. Following the trial, on February 1, 2024, Keller Williams entered into a settlement with plaintiffs agreeing to make certain changes to its business practices and to pay a total settlement amount of $70.0 million. On March 15, 2024, NAR and plaintiffs reached a settlement. As part of that settlement, NAR agreed to pay $418 million and make certain changes to its business practices, that among other things prohibit offers of compensation to buyer brokers on the MLS and requiring buyer agreements for MLS participants working with a buyer. The Burnett Court granted preliminary approval of the NAR settlement on April 23, 2024. On April 25, 2024, HSA entered into a settlement with the plaintiffs in which they agreed to certain changes to its business practices and to pay $250.0 million.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the court granted the plaintiffs' motion for class certification in the Burnett Action on April 22, 2022, and a trial was scheduled for October 2023. However, Remax entered into a Settlement Term Sheet with the plaintiffs in both the Burnett Action and the Moehrl Action on September 15, 2023, to resolve all claims in these lawsuits.
Subsequently, on September 19, 2023, the Burnett court stayed deadlines specifically for RE/MAX, LLC. A definitive settlement agreement was reached on October 5, 2023, containing similar terms to the initial settlement. The court granted preliminary approval to this agreement on November 20, 2023, and final approval on May 9, 2024. It is important to note that appeals were filed, and the settlement's effectiveness depends on the order approving the Settlement Agreement being affirmed at the conclusion of the appeals process.
Due to the Settlement Agreement, Remax did not present a defense or participate in the trial. The jury in the Burnett Action found an unlawful conspiracy existed and awarded approximately $1.8 billion against the three remaining defendants NAR, Keller Williams and HSA. Following the trial, Keller Williams, NAR, and HSA also reached settlements with the plaintiffs, agreeing to changes in business practices and payments of $70.0 million, $418 million, and $250.0 million, respectively.