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John L. Scott settles in Gibson commission lawsuit

by Emily Mack

John L. Scott has reached a settlement agreement in the ongoing buyer-agent commissions lawsuit, Gibson/Umpa. It is one of two independent brokerages to settle in the case this week, the other being the Michigan-based Real Estate One.

John L. Scott filed its settlement on Oct. 2. The documents do not disclose how much the company agreed to pay, although a forthcoming approval request will include more details.

The Gibson case, later combined with Umpa, was filed quickly after last year’s Sitzer/Burnett verdict was reached. Like that landmark case, Gibson/Umpa claims that brokerage defendants, in addition to the National Association of REALTORS®, created and implemented rules requiring homesellers to pay inflated commissions to agents.

Previously, COMPASS, Real Brokerage, Douglas Elliman, Redfin, Engel & Völkers, @properties, Christie’s International Real Estate, HomeSmart and United Real Estate have all settled in Gibson/Umpa. If John L. Scott and Real Estate One’s settlement agreements are similar, this latest move will put the total settlement fund at over $ 1 billion.

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