A U.S. appeals court on Wednesday upheld a $1 billion-plus settlement resolving antitrust claims that real estate brokerages conspired to inflate agent commissions, rejecting objections from class members who argued the deal unfairly released their claims.
The 8th U.S. Circuit Court of Appeals in St. Louis, in a decision authored by Circuit Judge Lavenski Smith, affirmed a November 2024 approval by U.S. District Judge Stephen Bough in Kansas City, Missouri. The settlement, valued at more than $1 billion, includes $418 million from the National Association of Realtors (NAR), $250 million from HomeServices of America—a Berkshire Hathaway subsidiary—and $333 million in legal fees.
The agreement resolves claims stemming from a 2023 Missouri jury verdict ordering the NAR, HomeServices and Keller Williams to pay $1.78 billion to home sellers over inflated commissions. As part of the settlement, the NAR agreed to revamp longstanding rules governing how agents split commissions, a change the appeals court said would benefit the entire class.
More than 2 million class members filed claims, though objections were raised by some home buyers and sellers who contended the settlement improperly released their claims and cited conflicts of interest. The three-judge panel concluded those conflicts were not severe enough to undermine the fairness of the agreement.
The NAR said it was pleased with the decision and would continue working to foster fair, transparent and pro-consumer real estate markets. Chris Kelly, chief executive of HomeServices, called the ruling a source of additional certainty for the company, its customers and agents. HomeServices’ parent, Berkshire Hathaway Energy, remains involved in a separate proposed class action before Judge Bough.
