The approved settlement resolves the claims
asserted against RE/MAX, LLC and releases RE/MAX affiliates on a
nationwide basis
DENVER, May 9, 2024
/PRNewswire/ -- RE/MAX, the #1 name in real estate*, received
final approval of the settlement agreement in the class action
lawsuits known as Burnett, Moehrl and Nosalek, and any similar
claims on a nationwide basis. The approved settlement resolves the
claims asserted against RE/MAX, LLC and includes releases for all
U.S. RE/MAX independent regions, franchisees and agents.
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
certain changes to business practices as part of the
settlement.
"Since entering into the settlement last fall, RE/MAX has been
committed to obtaining final approval," says RE/MAX Holdings CEO
Erik Carlson. "We are thrilled to be
leading the way in moving forward, maintaining our focus on
supporting RE/MAX affiliates and continuing to foster greater
transparency in the industry on behalf of homebuyers and
sellers."
The settlement agreement will become effective following any
appeals process, if applicable.
The settlement agreement is not an admission or concession of
liability, or of the validity of any claim, defense, or point of
fact or law on the part of any party. RE/MAX continues to deny the
material allegations of the complaints in the lawsuits.
* Source: MMR Strategy Group study of unaided
awareness
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 nearly 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.
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 antitrust class action lawsuits and the
settlement of such lawsuits, changes to the business practices of
RE/MAX, and greater transparency in the industry. 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 initiatives, (8) risks
related to the Company's leadership transitions, (9) fluctuations
in foreign currency exchange rates, (10) potential appeals of the
Settlement Agreement 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