eXp World Holdings Settles Class Action Lawsuit with $34 Million Payment

On December 9, 2024, eXp World Holdings, Inc. reached a significant milestone by entering into a definitive settlement agreement to resolve a class action lawsuit. The lawsuit, brought by 1925 Hooper LLC and others in the United States District Court for the Northern District of Georgia, has been a point of contention for the company.

The settlement agreement, which includes eXp Realty and its various subsidiaries, outlines the resolution of all claims on a nationwide basis, releasing the company and its affiliated entities from the lawsuit’s burdens. As part of the agreement, eXp has committed to paying $34 million into a qualified settlement fund. This payment will be split, with 50% to be paid within 30 business days after preliminary court approval and the remaining 50% to follow before the one-year anniversary of the initial payment.

Moreover, the settlement requires eXp to implement specific changes to its business practices, emphasizing transparency, disclosure, and adherence to real estate laws and practices. These changes include clarifying to agents that offers and commissions are negotiable, disclosing compensation offers clearly to clients, and ensuring equal opportunities for property showings regardless of compensation for buyer agents.

The Settlement Agreement is contingent upon receiving preliminary and final court approval, and upon approval, it will take effect. It’s important to note that the agreement and any actions taken do not constitute an admission of liability by any party involved.

The company’s management has also issued forward-looking statements regarding the settlement agreement. These statements caution that actual results may differ due to various risks and uncertainties. Readers are advised not to rely excessively on these forward-looking statements, which are based on information available at the time of writing.

For further details, the Settlement Agreement can be accessed as Exhibit 10.1 in the Current Report on Form 8-K filed by eXp World Holdings with the Securities and Exchange Commission. The company has articulated its intention to provide updates accordingly, as required by law.

This settlement marks a significant development for eXp World Holdings, highlighting its commitment to resolving legal matters efficiently while maintaining a transparent and compliant approach to its business operations.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read eXp World’s 8K filing here.

About eXp World

eXp World Holdings, Inc, together with its subsidiaries, provides cloud-based real estate brokerage services for residential homeowners and homebuyers. The company operates through North American Realty, International Realty, Virbela, and Other Affiliated Services segments. It provides Virbela, a cloud-based technologies that provides data, lead generation, and marketing tools for real estate agents and employees.