MLSs are facing renewed pressure to release listing data as a judge in the Sitzer/Burnett antitrust case ordered compliance with a subpoena. The settlement between buyers and major brokerages, which led to a historic payout, included language allowing plaintiffs to access seller and listing information to support litigation in related cases. However, the company behind the Flexmls platform, FBS, initially refused to hand over that data, prompting a legal challenge from the plaintiffs. The judge granted the request on Aug. 6, setting a deadline of Aug. 13 for the MLSs to file any objections to the data collection.
Funding distribution faces delays and bias allegations
The process of distributing settlement funds to class members in Sitzer/Burnett and Gibson is facing significant hurdles. The firm responsible for the distribution, JND Legal Administration, has formally requested the recusal of one of the special masters appointed to oversee the fund. U.S. District Judge Stephen Bough appointed Chris T. Hellums and Randall L. Sansom to the role in late July. Lawyers for JND allege that Hellums previously made unfounded pronouncements against their company, creating a conflict that prevents him from overseeing an audit of their work.
Related: AI tools streamline real estate agent workflows
JND Legal Administration’s push for a recusal has stalled the payout. Judge Bough must rule on this motion before the funds can be dispersed.
While the financial distribution of the settlement is stalled by these internal disputes, the broader litigation setting continues to shift. The National Association of Realtors is actively involved in a separate legal battle with ThePLS.com. In that case, the association is attempting to compel documents from UMRO Realty Group, also known as The Agency, which shares a founder with the plaintiff. The association argues that documents related to fraud accusations against founder Mauricio Umansky are essential to the case, specifically because they relate to the Clear Cooperation Policy at the heart of the dispute. The Agency has pushed back, arguing the request places an undue burden on the firm.
Related: HEMS strengthens emergency care in Saudi Arabia
Looking at the antitrust setting, the Federal Trade Commission is preparing for a bench trial against Zillow and Redfin in August. The parties have filed motions to exclude testimony from specific witnesses ahead of the scheduled Aug. 25 trial. The FTC argues that economic expert Dr. Gautam Gowrisankaran’s analysis is fundamentally flawed. Separately, attorneys for eXp Realty have filed an amended witness list for a sexual misconduct trial scheduled to begin later this month. The list includes plaintiff Anya Roberts, who alleges she was assaulted at a recruiting event, and various experts and witnesses to testify about the company’s operations and vetting processes.