Defendants appear to be lining up to settle class-action commission suits, with Douglas Elliman the latest brokerage to strike a deal. According to a just released Securities and Exchange Commission filing, Elliman has agreed to pay an initial $7.75 million to settle the Gibson suit—the potential of millions more in future payments.
According to the filing, the company will also make two payments of $5 million each, beyond the initial payment, which are subject to certain financial contingencies, no later than Dec. 31, 2027. The brokerage said the settlement is not an admission of liability, nor does Douglas Elliman concede or validate any of the claims asserted against it.
The contingencies include that the first payment will be made if “as of December 31, 2025, Douglas Elliman’s Cash Balance is at least $40.0 million, or if Douglas Elliman’s Cash Balance is less than $40.0 million as of Dec. 31, 2025, but subsequently exceeds such threshold in any following month until Dec. 31, 2027.” The second contingency is subject to similar terms for 2026, noting that if “Douglas Elliman’s Cash Balance does not exceed $40.0 million at any point from Dec. 31, 2025 until Dec. 31, 2027, then Douglas Elliman will not be responsible for either of the Contingent Payments.”
Elliman has also agreed to change business practices as part of the settlement agreement.
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