Keller Williams settles Batton Commission lawsuit for $20 million
The Batton cases are among those filed by homebuyers and are still being litigated even as home sellers’ lawsuits have been settled.
Keller Williams has decided to end its role in the Batton buyer-broker commission lawsuit, according to court documents and an announcement late Monday.
The Texas-based franchisor agreed to pay $20 million to settle the lawsuit, according to newly filed court documents. The lawsuit alleges that the National Association of Realtors, Anywhere Real Estate (now Compass International Holdings), REMAX and Keller Williams Realty participated in a “decades-long, nationwide antitrust conspiracy” that resulted in homebuyers paying “billions in overcharges.”
“Keller Williams is pleased to reach a nationwide settlement that will release the company – and all of our franchisees and affiliated agents and teams – from antitrust litigation brought by homebuyers who purchased residential real estate that was listed on an exchange. [multiple listing service] during the relevant period,” a KW spokesperson told Inman in an emailed statement. “Keller Williams has always been focused on building a place where entrepreneurs can thrive.”
“Now that we are past this settlement, all of us at Keller Williams are focused on what we do best: enabling our entrepreneurs to continue delivering exceptional value in this rapidly evolving marketplace,” she added.
Batton has struggled to get through the legal system, with the case split between Batton 1 and Batton 2.
Batton 1, involving Keller Williams, was originally filed by New Jersey homebuyer Judah Leeder in January 2021. Batton 2, involving Compass, Inc., eXp World Holdings, Inc., Redfin Corporation, Weichert Realtors, United Real Estate Group and Douglas Elliman Inc. involved was filed in November 2023 by Illinois homebuyer Mya Batton.
The first lawsuit was renamed Batton 1 after Leeder resigned as lead plaintiff and Batton became the class representative.
Batton 1 was dismissed and refiled in 2022, losing its class action certification status in November. NAR and the other defendants questioned the class-action status, saying the class the plaintiffs in the Batton case hoped to certify includes many individuals who are also class members in a separate case known as Sitzer | Burnett.
“The court’s order vacating plaintiffs’ class certification motion properly recognizes that plaintiffs improperly attempted to certify a class that, as estimated by plaintiffs, includes nearly four of the five individuals barred from participating in this case under the Sitzer|Burnett settlement,” a NAR spokesperson told Inman in November.
The plaintiffs can file again with a new proposed class, but that is no longer a concern for Keller Williams.
“We are the first defendant to resolve this lawsuit with the goal of eliminating uncertainty for our franchisees and agents,” Keller Williams CEO Chris Czarnecki said in an email to regional directors and division leaders. “We made the decision after careful consideration of the short- and long-term well-being of our franchisees and agents, and the business model on which they depend.”
“It was a decision to provide certainty and allow everyone at KW to focus on our mission without distraction,” he added. “It allows us all to focus our attention back on what we do best: delivering unparalleled value in an ever-evolving real estate market.”
A spokesperson for NAR said KW’s settlement “does not directly impact NAR’s position in the Batton lawsuit” and that the Association “will continue to pursue all possible remedies, both non-litigation and litigation, to achieve an outcome that is in the best interests of our members, the industry and consumers.”
“We respect Keller Williams’ right to settle these claims and anticipated the possibility that they would do so,” they said in an emailed statement. “NAR remains actively involved in the Batton joint defense group, and we continue to defend our rules where they are challenged.”
Previous settlements for commission cases — including one that reached Keller Williams in 2024 — focused on lawsuits brought by home sellers. These lawsuits dominated real estate news in 2023 and 2024, ultimately leading to large payouts from industry players and changes to the rules that affect the way agents do business.
Homebuyer lawsuits have received slightly less attention, but continue to make their way through the courts.
Read the details of the settlement below:
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