eXp World Holdings Added as Defendant in Georgia Home-Seller Commission Class Action

eXp World Holdings, Inc., parent of eXp Realty, disclosed in a Form 8-K filed December 11, 2023 that it has been added as a defendant in a proposed class action over real estate commissions in federal court in Atlanta.

The suit, originally captioned Phillips, et al. v. The National Association of Realtors et al., was filed November 22, 2023 in the U.S. District Court for the Northern District of Georgia against the National Association of Realtors and several unaffiliated brokerages. On December 6 the complaint was amended to broaden the case, replace the proposed class representatives and add more brokerages as defendants, including eXp.

The amended complaint alleges the defendants took part in a system that caused home sellers to pay inflated buyer-broker commissions, in violation of federal and Georgia antitrust laws and Georgia deceptive trade practice and consumer protection statutes. Plaintiffs seek an injunction barring defendants from requiring sellers to pay buyer brokers or otherwise restricting competition among brokers, along with declaratory relief, damages or restitution, exemplary damages, interest and legal fees, and assert that the defendants are jointly and severally liable.

The filing added to a string of commission antitrust suits naming eXp since late October 2023. eXp Realty is a cloud-based brokerage whose agents can earn revenue share and equity for helping attract other agents.