NextHome settles case over counterfeit commissions

Fast-growing franchise company NextHome has reached a settlement agreement with home sellers in a case over early commission copying.

NextHome, which has more than 600 offices nationwide, agreed to terms set by plaintiffs in the Gibson/Umpa class action lawsuit. Details of the settlement were not disclosed.

James Dwiggins is the co-founder and CEO of NextHome. He is also a podcaster and influential voice in the industry, particularly around compensation and other legal challenges facing residential real estate.

Which case is this? The Gibson lawsuit was filed moments after the jury reached its verdict in the historic Sitzer/Burnett trial nearly a year ago. The class includes all home sellers who used a listing agent associated with one of seven real estate firms named as defendants between October 2019 and October 2023. Gibson was later consolidated with Umpa, another lawsuit filed in the same court.

Settlement information: The filing did not say how much NextHome would pay. However, it did say that plaintiffs plan to file documents for preliminary and final approval.

The settlement funds in the Sitzer/Burnett, Moehrl and Gibson cases total more than $980 million. As of September 11, NAR and 15 brokerage firms have publicly disclosed settlements.

Completed, but on appeal:

The written observations of the applicants for the appeal must be submitted no later than 25 September.

Provisionally approved or recently announced:

• National Association of Realtors: $418 million

• HomeServices of America: $250 million

• Compass: $57.5 million

• Real Estate: $9.25 Million

• Realty One: $5 million

• HomeSmart: $4.7 million

• @properties: $6.65 million

• Douglas Elliman: Up to $17.75 million

• Redfin: $9.25 million

• Engel & Völkers: $6.9 million

• United Real Estate: $3.75 million

• The Keyes Company: Not immediately disclosed

• NextHome: Not immediately announced

Final approval of the NAR and HomeServices deals — the two largest settlements, accounting for more than two-thirds of the total fund to date — is scheduled for Nov. 26.

The remaining brokerages — aside from NextHome and Keyes, which settled on Sept. 3 — will have a final approval hearing on Oct. 31; hearings for NextHome and Keyes will be set after their agreements are preliminarily approved.