MLS real estate information network The (MLS PIN) settlement agreement in the Nosarek Class Action Antitrust Buyer-Broker Indemnity Litigation is in further trouble.
On Thursday, Ministry of Justice Expressing “serious concerns” about the proposed antitrust settlement between home sellers and MLS PIN, the company has filed a motion to extend the deadline for final approval of the settlement.
“The United States is making this request to enable the Department of Justice to better evaluate the proposed settlement and its competitive effects,” the motion reads. “In accordance with its mission, the Antitrust Division is concerned about policies, practices, and regulations in the residential real estate industry that have the potential to increase broker fees.”
Additionally, “the Buyer-Broker Board’s rules are the subject of several pending antitrust cases, as well as an appeal in which the United States is an appellant.”
The Department of Justice has asked the court to extend the final approval hearing deadline from January 4, 2024 to March 7, 2024.
The settlement agreement initially met with resistance from Boston Federal District Court Judge Patty Sallis, who is overseeing the case. Saris initially expressed skepticism about the financial part of the deal, but ultimately approved it in mid-September.
In the proposed agreement, MLS PIN said it would pay $3 million, change the commission’s policies and cooperate with the remaining defendants in the lawsuit. anywhere, RE/MAX, keller williams and Home American Services.
According to the proposed settlement, of the $3 million MLS PIN agreed to pay in the settlement, up to $900,000 will be in attorney fees, up to $200,000 in costs, and $250,000 in notifications to each of the Settlement Class Members and the three parties. The amount will be allocated to The named lead plaintiff will receive up to $2,500 as a class representative.
The remaining $1,642,500 will be used to pay further costs of litigation against the remaining defendants “for the benefit of the settling class members,” according to the filing.
The Justice Department’s latest filing makes no mention of the proposed $3 million in damages.
In response to the Justice Department’s motion, the class action plaintiffs filed their own documents opposing the Justice Department’s allegations, saying the department had not identified specific weaknesses in the proposed settlement.
“The Department had full access to all terms of the settlement agreement for more than three months,” the plaintiffs’ Sept. 29 filing states. “Furthermore, despite years of efforts to analyze the underlying issues, as the Department itself acknowledges in its complaint, the Department still continues to report Beyond “concerns,” the plaintiffs have not been able to clearly demonstrate the specific weaknesses of the proposed settlement. “”
Originally submitted in December 2020, nosarek lawsuitThe company, named after the lead plaintiff, is owned by brokers MLS PIN compliance is not directly required National Association of Realtors (NAR) Rules.
However, we nevertheless adopt the following rules: NAR Rules requiring listing brokers to make comprehensive and unsolicited offers offer of compensation Send to buyer broker to submit listing to MLS PIN.
Unlike the other two buyer-broker fee cases, Merle and Sitzer/Barnett, NAR is not a defendant in the Nosarek lawsuit. Additionally, Anywhere and RE/MAX have filed settlement agreements in the Moehrl and Sitzer/Burnett cases, but have not attempted to settle the Nosalek case.
MLS PIN, New England’s largest Multiple Listing Service (MLS), settlement agreement In late June.
Home Services of America and MLS PIN declined to comment on the Justice Department’s allegations. RE/MAX, Anywhere and Keller Williams did not respond to requests for comment.
