The settlement, if granted final approval, will resolve the
claims asserted against RE/MAX, LLC and release RE/MAX affiliates
on a nationwide basis.
DENVER, Nov. 20,
2023 /PRNewswire/ -- RE/MAX®, the #1 name in
real estate*, today announced the Missouri court granted preliminary approval of
its settlement in the class action lawsuits known as Burnett,
Moehrl and Nosalek, and any similar claims on a nationwide
basis.
To address the pending litigation and mitigate the uncertainties
and costs associated with prolonged legal proceedings, RE/MAX, LLC
entered into a settlement agreement with plaintiffs on October 5, 2023. RE/MAX, LLC agreed to pay
$55 million and make changes to
business practices as part of the settlement. The proposed
settlement would resolve on a nationwide basis all claims asserted
against RE/MAX, LLC and includes releases for all U.S. RE/MAX
independent regions, franchisees and agents. RE/MAX, LLC continues
to deny the allegations made in the complaints and does not
acknowledge any wrongdoing.
Under the terms of the proposed settlement, RE/MAX, LLC has
deposited 25% of the agreed-upon $55
million into a settlement fund; 25% is due within 10
business days after preliminary approval; and the remainder within
10 business days after final court approval.
"We are pleased with the court's decision to grant preliminary
approval of the settlement," said Nick
Bailey, President and CEO of RE/MAX, LLC. "This development
signifies progress in our ongoing efforts and commitment to a
resolution – it's a positive step forward in bringing these cases
closer to the finish line."
If the settlement is granted final approval by the Missouri court, all U.S. RE/MAX affiliates,
including franchisees and agents, will be protected from claims
connected to the lawsuits and any similar claims. At this time,
final approval is expected sometime next year. The business
practice terms of the settlement must be implemented within six
months of the final effective date. Apart from the $55 million payment, RE/MAX, LLC does not expect
the terms of the settlement agreement to have a material impact on
its results of operations and cash flows.
About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC
is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than
140,000 agents in almost 9,000 offices and a presence in more than
110 countries and territories. Nobody in the world sells more real
estate than RE/MAX, as measured by residential transaction sides.
RE/MAX was founded in 1973 by Dave and Gail
Liniger, with an innovative, entrepreneurial culture
affording its agents and franchisees the flexibility to operate
their businesses with great independence. RE/MAX agents have lived,
worked and served in their local communities for decades, raising
millions of dollars every year for Children's Miracle Network
Hospitals® and other charities. To learn more about RE/MAX, to
search home listings or find an agent in your community, please
visit www.remax.com. For the latest news about RE/MAX, please
visit news.remax.com. This is not an offer of a franchise. Any
franchise offer is made only after a Franchise Disclosure Document
has been provided.
Forward-Looking Statements
This Press Release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are often identified by the use of words such as
"believe," "intend," "expect," "estimate," "plan," "outlook,"
"project," "anticipate," "may," "will," "would," and other similar
words and expressions that predict or indicate future events or
trends that are not statements of historical matters.
Forward-looking statements include statements related to the class
action lawsuits known as Burnett, Moehrl, and Nosalek and similar
claims, the settlement and resolution of such lawsuits and similar
claims on a nationwide basis (the "Settlement"), final court
approval of the Settlement and timing thereof, the expected
$55.0 million payment under the
Settlement; changes to the business practices of RE/MAX; and the
impact that the Settlement, including changes to RE/MAX business
practices, may have on the business or results of operations or
cash flows of RE/MAX or RE/MAX Holdings, Inc. Forward-looking
statements should not be read as a guarantee of future performance
or results and will not necessarily accurately indicate the times
at which such performance or results may be achieved.
Forward-looking statements are based on information available at
the time those statements are made and/or management's good faith
belief as of that time with respect to future events and are
subject to risks and uncertainties that could cause actual
performance or results to differ materially from those expressed in
or suggested by the forward-looking statements. These risks and
uncertainties include, without limitation, (1) changes in the real
estate market or interest rates and availability of financing, (2)
changes in business and economic activity in general, (3) the
Company's ability to attract and retain quality franchisees, (4)
the Company's franchisees' ability to recruit and retain real
estate agents and mortgage loan originators, (5) changes in laws
and regulations, (6) the Company's ability to enhance, market, and
protect its brands, including the RE/MAX and Motto Mortgage brands,
(7) the Company's ability to implement its technology initiatives,
(8) risks related to the Company's CEO transition, (9) fluctuations
in foreign currency exchange rates, (10) the ability of the parties
to obtain final court approval of the Settlement, and (11) those
risks and uncertainties described in the sections entitled "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the most recent Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q filed with
the Securities and Exchange Commission ("SEC") and similar
disclosures in subsequent periodic and current reports filed with
the SEC, which are available on the investor relations page of the
Company's website at www.remaxholdings.com and on the SEC website
at www.sec.gov. Readers are cautioned not to place undue reliance
on forward-looking statements, which speak only as of the date on
which they are made. Except as required by law, the Company does
not intend, and undertakes no obligation, to update this
information to reflect future events or circumstances.
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SOURCE RE/MAX, LLC