Douglas Elliman Inc. (NYSE: DOUG) has become the latest brokerage to announce a settlement that will resolve class action lawsuits related to real estate agent commission fees.
Under the terms of the settlement agreement, Douglas Elliman will pay $7.75 million within 30 business days of preliminary court approval and up to two additional $5 million contingent payments between Dec. 31, 2025, and Dec. 31, 2027. The settlement agreement, which is related to the pending Gibson and Umpa cases in the Western District of Missouri, does not require an admission of liability.
The company’s announcement of the settlement agreement noted the deal includes “certain changes” to its business practices that “are consistent with the business changes Douglas Elliman’s competitors agreed to make in their respective settlements of similar litigation, many of which were already longstanding Douglas Elliman policies.”
“The settlement agreement reflects Douglas Elliman’s commitment to mitigating future uncertainties and limiting legal costs, which will benefit our company, agents and stockholders,” said Howard M. Lorber, chairman and CEO of Douglas Elliman. “Our global network of leading agents and luxury brand continue to position Douglas Elliman for future success as real estate markets stabilize. We remain confident our differentiated business position will enable continued growth over the long term.”
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