Objections Mount Against eXp and Weichert Commission Lawsuit Settlements
Recent developments in the legal landscape surrounding real estate commission practices have seen significant challenges mounted against the proposed settlements involving eXp World Holdings and Weichert Realtors in the Hooper commission lawsuit. These objections, primarily from the Gibson plaintiffs and James Mullis, underscore ongoing contentious issues regarding the fairness and comprehensive nature of the agreements, potentially influencing the final judicial review slated for October 28, 2025.
The Gibson plaintiffs, including Don Gibson, Jeremy Keel, and Daniel Umpa, lodged their formal objection, reiterating previous allegations that eXp and Weichert engaged in a \"reverse auction\" to secure their settlement terms. They argue that because the Hooper litigation was less developed than the Gibson suit when these settlements were reached, and given the Hooper plaintiffs' attorneys were handling their first such case, the defendants exploited the situation. This, they contend, led to inadequate settlements via an unfair procedural tactic, thereby warranting rejection of the current agreements.
The accusations of a reverse auction were initially raised by the Gibson plaintiffs in October 2024, shortly after eXp announced its settlement. These claims were subsequently extended to Weichert following its settlement with the Hooper plaintiffs in November 2024. Despite these objections, Judge Mark H. Cohen of the U.S. District Court in Atlanta denied the Gibson plaintiffs' motion to intervene or transfer the case to Missouri, where their own and the Sitzer/Burnett suits were being litigated, in March.
Further complicating matters, James Mullis, a plaintiff in the Batton homebuyer commission lawsuits, filed a separate objection. Mullis has a history of challenging and appealing final approvals of commission lawsuit settlements, including those involving the National Association of Realtors (NAR), RE/MAX, Anywhere, and Keller Williams. His current objection focuses on the broad wording used to define \"released claims\" within the eXp and Weichert settlements.
Mullis argues that the settlement's definition of released claims, which encompasses \"any and all manner of federal and state claims regardless of the cause of action in any way arising from or relating to conduct that was alleged or could have been alleged in the Action arising from or related to any or all of the same factual predicates for the claims alleged in the Action, including but not limited to compensation negotiated, offered, obtained, or paid to brokerages in connection with the sale of any residential home,\" is excessively wide-ranging. He expresses concern that this expansive language could inadvertently release buy-side claims, despite the Hooper suit being filed by home sellers.
His contention is that claims made in the Hooper suit, initiated by home sellers, fundamentally differ from those in buy-side commission lawsuits like Batton. Therefore, he asserts, buyer claims should not be released by these particular settlements. Mullis has requested the court to clarify the identities of the released parties and to specifically exclude buyer claims from the scope of these settlements, a request he has made in other similar legal challenges. Judge Cohen had previously granted preliminary approval to these settlements in late May, with the final approval hearing now a pivotal event scheduled for October 28, 2025, where these objections will be thoroughly considered.