Keller Williams settles the Sitzer/Burnett commission lawsuit for $70 million

Keller Williams has decided to bow out of the Sitzer/Burnett commission lawsuit. On Thursday, the Gary Keller-helmed brokerage notified the federal court in Missouri that it had entered into a settlement agreement with the plaintiffs in the Sitzer/Burnett suit. The settlement settles all home seller lawsuits nationwide.

According to Keller Williams spokesperson Darryl Frost, the firm will pay $70 million as part of the settlement agreement.

“This will not impact our operations or our ability to support our franchisees and agents,” Frost added in his email.

In an email sent to Keller Williams leaders, agents and associates, Keller wrote that he was “relieved to share that we have negotiated a nationwide settlement of the Sitzer/Burnett case.”

While the exact terms of the settlement have yet to be disclosed, Keller told members of the firm that the settlement “releases individual agents and franchisees from copycat litigation filed in the wake of Sitzer/Burnett.”

According to Keller’s email, the firm decided to enter into a settlement due to the speculation and uncertainty across the industry in the wake of the jury verdict in the Sitzer/Burnett suit.

“We had full confidence in the strength of our appeal. But we also knew the appellate process could be long and unpredictable – and that our franchisees and agents would have no protection and complete uncertainty while that process played out over time. Our Keller Williams family needs and deserves protection now, not later,” Keller wrote.

“We came to the decision to settle with careful consideration for the immediate and long-term well-being of our agents, our franchisees, and the business models they depend on. It was a decision to bring stability, relief, and the freedom for us all to focus on our mission without distractions. It allows us all to turn our attention back to what we do best: delivering unparalleled value in an ever-evolving real estate market,” he added.

Keller Williams joins Anywhere and RE/MAX in settling the Sitzer/Burnett lawsuit. The HomeServices of America and the National Association of Realtors are the only remaining defendants in the suit.