Redfin agrees to pay $9.25 million to settle real estate broker commission lawsuits

abcnews.go.com:

Redfin has agreed to pay $9.25 million to settle federal lawsuits that claim U.S. homeowners were saddled with artificially inflated broker commissions when they sold their home as a result of longstanding real estate industry practices

Redfin has agreed to pay $9.25 million to settle federal lawsuits that claim U.S. homeowners were saddled with artificially inflated broker commissions when they sold their home as a result of longstanding real estate industry practices.

The online brokerage and real estate services company disclosed the proposed settlement Monday in a regulatory filing with the Securities and Exchange Commission.

The settlement, which Redfin agreed to Friday, would resolve pending class action lawsuits filed in federal court in the Western District of Missouri, and also shield the company, its subsidiaries and agents from similar cases around the country, according to the filing.

«Resolving this litigation now and removing uncertainty is in the best interest of the company, our employees, and our investors,” the company said in a statement Monday.

Seattle-based Redfin noted that it doesn't expect the settlement, which must be approved by the court, to have a material impact on its future operations, adding it expects to record a $9.25 million pre-tax charge for the quarter ended March 31.

Shares in Redfin were up 3.7% in afternoon trading Monday.

Redfin is the latest big brokerage to agree to settlement terms in order to put an end to lawsuits related to the real estate industry's broker compensation structure, following Re/Max, Keller Williams Realty, Compass and Anywhere Real Estate. Last month, HomeServices of America, which is owned by Warren Buffett’s Berkshire Hathaway, agreed to pay $250 million