RE/MAX Executives Have No Regrets Over $55M Lawsuit Settlement. Company Executives Say Ruling Will Have Little Impact On Their Business
The earth shattering ruling against real estate industry last week is still sending shockwaves through the industry. A Missouri jury ordered the NAR and several large residential brokerages to reimburse homeowners $1.8 billion to $5 billion for artificially inflating commissions. However, RE/MAX dodged a bullet in the suit. Why? They settled out of court with the plaintiffs for $55 million. Now, RE/MAX executives have no regrets for their decision.
RE/MAX CEO Steve Joyce told investors on a 3rd quarter earning call on Friday:
Some real estate experts speculate RE/MAX’s settlement may be jeopardy. They point to Judge Stephen Bough’s yet to be announced injunction and final ruling. However, RE/MAX executives told analysts on the call that they were confident it would be approved.
Executives also expressed confidence the settlement would not have a significant impact financial viability moving forward.
RE/MAX President Nick Bailey also stated:
“In the settlement we agreed to certain business practice changes, many of which we already do. Apart from payment of the settlement amount [of $55 million], we do not expect the terms of the proposed settlement to have material impact on results of operations and cash flows.”
Bailey also said that most of the brokers are really working to keep their agents focused on the business.
Regardless of what these changes may look like, Joyce told investors that the strength of the RE/MAX brand would help carry the firm through any unexpected challenges that may arise.