A real-estate brokerage owned by Warren Buffett's Berkshire Hathaway agreed to pay $250 million to settle a case over its commission fees, it was reported after home sellers filed a lawsuit against HomeServices of America alleging the the company was conspiring to force sellers to pay inflated agent commissions.
Plaintiff attorney Benjamin D. Brown, managing partner of Cohen Milstein Sellers & Toll and co-chair of its Antitrust practice, said as per Business Insider, "This is another significant settlement for American home sellers who have been saddled with paying billions in unnecessary commission costs. This brings us a step closer to resolving this long-running case involving the industry-wide brokers' commission scheme."
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HomeServices executive Vice President Chris Kelly said as per the outlet that the brokerage settled the case to "eliminate the uncertainty brought by the protracted appellate and litigation process."
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“As we move beyond this settlement, our focus remains steadfast on ethical operations, industry integrity, and delivering value. Our long-standing principle of helping agents build careers that positively impact the communities and consumers they serve continues,” Chris Kelly said.
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{{/usCountry}}“As we move beyond this settlement, our focus remains steadfast on ethical operations, industry integrity, and delivering value. Our long-standing principle of helping agents build careers that positively impact the communities and consumers they serve continues,” Chris Kelly said.
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{{/usCountry}}Home sellers also sued other brokerages alleging that they had to pay commissions for both their own agents and those of buyers, the report added. The case also argued that buyers should pay their agents directly. This would increase competition, slash commissions and save consumers money, they said.