Achi news desk-
Real estate brokerage owned by Warren Buffett of Berkshire Hathaway BRK-AN said Friday it has reached a $250 million nationwide antitrust litigation settlement that is expected to change how real estate agents are paid.
HomeServices of America, the largest real estate brokerage in the United States, was the last remaining defendant in a lawsuit against the National Association of Realtors (NAR) and four brokerages.
His settlement would eliminate the risk of a much higher payout, after a jury in Kansas City, Missouri in October sided with home sellers who accused the industry of conspiring to keep real estate commissions in that state artificially high.
Jurors awarded $1.78-billion in damages, which a judge could have tripled.
The HomeServices settlement requires court approval. Lawyers for the plaintiff sellers did not immediately respond to requests for comment.
The NAR agreed to settle nationwide antitrust litigation for $418-million last month, and won a judge’s preliminary approval on Tuesday.
He also agreed to rewrite rules for paying buyers’ and sellers’ agents. Analysts said the changes could reduce commissions by at least 25 percent.
With the latest settlement, the NAR and brokerages including HomeServices Anywhere Real Estate and Re/Max would pay more than $943-million to resolve antitrust claims.
Berkshire Hathaway owns 92 percent of Berkshire Hathaway Energy, which owns HomeServices as well as a variety of utilities, pipelines and renewable energy projects.
Home Services spokesman Chris Kelly said the brokerage settlement represents Home Services’ “sole liability, with no parent entity participating,” and will result in an after-tax accounting charge of $140 million.
Berkshire Hathaway Energy remains a defendant in a similar suit in Kansas City against several brokerages.
Lawyers for plaintiffs there did not immediately respond to requests for comment.
Buffett’s conglomerate, Berkshire Hathaway, ended 2023 with $167.6-billion in cash and cash equivalents.
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