In a significant antitrust lawsuit involving the leading multiple listing service in New England and home selling plaintiffs, Judge Patti Saris of the U.S. District Court in Massachusetts voiced concerns regarding the proposed settlement’s structure. The settlement sees MLS PIN agreeing to revise its commission policies, pay $3 million, and collaborate against other prominent real estate brands involved in the case.
Judge Saris highlighted her unfamiliarity with such a settlement during the Zoom hearing, expressing uncertainty over its structure. The proposed financial breakdown allots $900,000 for attorney fees, $200,000 for expenses, and roughly $250,000 for notifying the class. However, none of the settlement’s principal sum directly compensates class members. Instead, a significant portion potentially funds ongoing litigation, ensuring attorneys face minimal financial risk.
Though the case, known as Nosalek, was initiated in 2020 and alleges commission sharing among brokers increases seller costs, it notably excludes the National Association of Realtors as a defendant, focusing instead on MLS PIN.
During the hearing, discussions centered around the fair allocation of the settlement funds, ensuring equitable distribution for both attorneys and the plaintiffs. Saris praised the rule changes in the settlement, which would align with those of broker-owned Northwest MLS, but remained concerned about the distribution’s fairness.
The Judge urged attorneys to reconsider the settlement’s structure, emphasizing the importance of swiftly implementing the commendable rule change without compromising fairness. She highlighted the potential inequity, pointing out the attorneys’ complete financial coverage while class members receive no direct compensation.