Keller Williams has decided to put an end to its part in the Batton buyer-broker commission lawsuit, according to court documents and an announcement late Monday.
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The Texas-based franchisor agreed to pay $20 million to settle the suit, the newly filed court documents reveal. The suit 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 releasing the company — and all of our franchisees and affiliated agents and teams — from antitrust litigation brought by home buyers who purchased residential real estate that was listed on a [multiple listing service] during the relevant time period,” a KW spokesperson told Inman in an emailed statement. “Keller Williams has always been focused on building a place where entrepreneurs can thrive.”
“As we move past this settled lawsuit, all of us at Keller Williams are focused on what we do best: empowering our entrepreneurs to continue delivering exceptional value in this rapidly evolving market,” they added.
Batton has struggled to move through the court system, with the case split between Batton 1 and Batton 2.
Batton 1, which involves Keller Williams, was originally filed by New Jersey homebuyer Judah Leeder in January 2021. Batton 2, which involves Compass, Inc., eXp World Holdings, Inc., Redfin Corporation, Weichert Realtors, United Real Estate Group and Douglas Elliman Inc., was filed in November 2023 by Illinois homebuyer Mya Batton.
The first suit was renamed Batton 1 after Leeder stepped down as the lead plaintiff, and Batton became the class representative.
Batton 1 was dismissed in 2022 and refiled, and lost class-action certification status in November. NAR and the other defendants called the class-action status into question, saying that the class that plaintiffs in the Batton case were hoping to certify includes many individuals who are also class members in a separate case known as Sitzer | Burnett.
“The court’s order striking the Plaintiffs’ class certification motion rightly acknowledges that the Plaintiffs improperly attempted to certify a class that, as estimated by the plaintiffs, includes nearly 4 out of 5 individuals who are barred from participating in this case under the Sitzer | Burnett settlement,” an NAR spokesperson told Inman in November.
The plaintiffs can refile with a new proposed class, but that is no longer a worry for Keller Williams.
“We are the first defendant to resolve this litigation 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 came to the decision to settle with careful consideration for the immediate and long-term well-being of our franchisees and agents, and the business model they depend on.”
“It was a decision to bring certainty and allow everyone at KW to focus on our mission without distractions,” he added. “It allows us all to turn our attention back to what we do best: delivering unparalleled value in an ever-evolving real estate market.”
A NAR spokesperson said KW’s settlement “does not directly affect NAR’s position in the Batton litigation” and that the Association will continue to “pursue all potential resolutions, both non-litigation and litigation, to reach a result that is in the best interest of our members, the industry and consumers.”
“We respect Keller Williams’ right to settle these claims and anticipated the possibility they would do so,” they said in an emailed statement. “NAR remains actively engaged in the Batton joint defense group, and we continue to defend our rules where questioned.”
Previous commission lawsuit settlements — including one Keller Williams struck in 2024 — have focused on lawsuits filed by homesellers. Those suits dominated real estate news in 2023 and 2024, and ultimately led to large payouts from industry players as well as rules changes that influence how agents do business.
Lawsuits from homebuyers have generated somewhat less attention, but continue to work their way through the courts.
Read the settlement details below:
