Compass Faces $517 Million Risk From Realtors' Legal Settlement.

NATIONAL Association of Realtors; REAL estate agents; CASH & cash equivalents; REAL estate business; ANTITRUST violation lawsuits

The National Association of Realtors (NAR) has reached a $418 million settlement in an antitrust lawsuit, which could have significant financial implications for major US brokerages. According to the settlement agreement, brokerages that have not yet settled with the plaintiffs will need to pay 0.25% of their average annual transaction volume. For example, Compass Inc. could potentially owe $517 million, more than three times its cash reserves and over 35% of its market capitalization. Other brokerages, such as eXp World Holdings Inc., could also face substantial payments. The settlement allows brokerages to enter mediation to negotiate a lower amount, but not participating in the settlement could expose them to future litigation risks. The NAR settlement may lead to changes in how the real estate industry operates, particularly in terms of setting buyer representatives' commissions. [Extracted from the article]

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