Douglas
Elliman
has
joined
the

growing
list
of
brokerages
that
have
settled
the

commission
lawsuits.

In

an
8K
filed
with
the


Securities
and
Exchange
Commission
(SEC)
on
Friday,
the
firm
announced
that
it
had
reached
a
nationwide
settlement
agreement
with

the
Gibson
lawsuit
plaintiffs.

According
to
the
filing
and
an
accompanying
press
release,
the
settlement
covers
Douglas
Elliman
and
all
of
its
subsidiaries.
Additionally,
the
firm
said
the
settlement
is
not
an
admission
of
liability,
nor
does
Douglas
Elliman
concede
or
validate
any
of
the
claims
asserted
against
it.

As
part
of
the
settlement
agreement,
Douglas
Elliman
will
pay
$7.75
million
into
an
escrow
fund
within
30
days
of
the
settlement’s
preliminary
approval.
It
will
then
make
two
payments
of
$5
million
each,
which
are
subject
to
certain
financial
contingencies,
no
later
than
Dec.
31,
2027.

One
of
the
contingencies
states
that
the
first
payment
will
be
made
if
“as
of
December 31,
2025,
Douglas
Elliman’s
Cash
Balance
is
at
least
$40.0 million,
or
if
Douglas
Elliman’s
Cash
Balance
is
less
than
$40.0 million
as
of
Dec. 31,
2025,
but
subsequently
exceeds
such
threshold
in
any
following
month
until
Dec. 31,
2027.”

The
second
contingency
payment
is
subject
to
similar
terms,
except
that
the
first
deadline
is
a
year
later
on
Dec.
31,
2026.
The
SEC
filing
also
notes
that
if
“Douglas
Elliman’s
Cash
Balance
does
not
exceed
$40.0 million
at
any
point
from
Dec. 31,
2025
until
Dec. 31,
2027,
then
Douglas
Elliman
will
not
be
responsible
for
either
of
the
Contingent
Payments.”

As
of

Dec.
31,
2023,
Douglas
Elliman
had
$119.8
million
of
cash
and
cash
equivalents
on
its
balance
sheet.

In
addition
to
the
monetary
settlement,
the
firm
has
also
agreed
to
change
certain
business
practices
as
part
of
the
settlement
agreement.

Like
other
brokerages
that
have
settled,
the
terms
of
Douglas
Elliman’s
settlement
include
that
it
will
require
or
encourage
agents
to
make
it
clear
to
clients
that
commissions
are
negotiable;
that
agents
will
have
the
freedom
to
set
or
negotiate
commissions
as
they
see
fit;
and
that
agents
will
not
be
required
to
make
offers
of
compensation
or
accept
offers
of
compensation
from
cooperating
brokers.

The
firm
also
agreed
that
will
not
provide
agents
with
any
software
that
filters
or
restricts
MLS
listings
based
on
the
level
of
compensation
being
offered.

“The
settlement
agreement
reflects
Douglas
Elliman’s
commitment
to
mitigating
future
uncertainties
and
limiting
legal
costs,
which
will
benefit
our
Company,
agents
and
stockholders,”
Howard
M.
Lorber,
the
chairman
and
CEO
of
Douglas
Elliman,
said
in
a
statement.

“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.”

Douglas
Elliman
joins


Realty
One
Group,


At
World
Properties,


Anywhere, RE/MAX, Keller
Williams, Compass, HomeServices
of
America
and The
Real
Brokerage,
in
settling
the

commission
lawsuits.

The National
Association
of
Realtors has
also
reached
a
nationwide settlement of
the commission
lawsuits.
The
agreement
was
granted preliminary
approval by
a
court
last
week.

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