The Real Brokerage Inc. Announces Settlement Agreement in Class Action Litigation
April 08 2024 - 7:00AM
Business Wire
The Real Brokerage Inc. (NASDAQ: REAX, “Real” or the “Company”)
today announced that it has entered into a settlement agreement to
resolve the pending class action litigation, Umpa v. NAR,
4:23-cv-00945 (W.D. Mo.), on a nationwide basis.
This settlement conclusively addresses all claims asserted
against Real in the Umpa lawsuit, releasing Real, its subsidiaries,
and affiliated agents from these claims. The settlement does not
constitute an admission of liability by Real, nor does it concede
or validate any of the claims asserted in the litigation.
Under the terms of the settlement agreement, Real has committed
to paying $9.25 million into a qualified settlement fund within 30
days following the court’s preliminary approval of the settlement
agreement. The Company does not foresee the settlement terms having
a material impact on its future operations.
Additionally, Real has agreed to implement specific changes to
its business practices. These changes include clarifications about
the negotiability of commissions, prohibitions on claims that buyer
agent services are free, and the inclusion of listing broker
compensation offers in communications with clients. Real will also
develop training materials to support these practice changes.
The settlement agreement awaits preliminary and final court
approval and will take effect upon such final approval.
About Real
Real (NASDAQ: REAX) is a real estate experience company working
to make life’s most complex transaction simple. The fast-growing
company combines essential real estate, mortgage and closing
services with powerful technology to deliver a single seamless
end-to-end consumer experience, guided by trusted agents. With a
presence in all 50 states throughout the U.S. and Canada, Real
supports more than 16,000 agents who use its digital brokerage
platform and tight-knit professional community to power their own
forward-thinking businesses.
Forward-Looking Information
This press release contains forward-looking information within
the meaning of applicable Canadian securities laws. Forward-looking
information is often, but not always, identified by the use of
words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”,
“expect”, “likely” and “intend” and statements that an event or
result “may”, “will”, “should”, “could” or “might” occur or be
achieved and other similar expressions. These statements reflect
management’s current beliefs and are based on information currently
available to management as of the date hereof. Forward-looking
information in this press release includes, without limiting the
foregoing, expectations regarding the settlement and settlement
agreement.
Forward-looking information is based on assumptions that may
prove to be incorrect, including but not limited to Real’s business
objectives, expected growth, results of operations, performance,
business projects and opportunities and financial results. Real
considers these assumptions to be reasonable in the circumstances.
However, forward-looking information is subject to known and
unknown risks, uncertainties and other factors that could cause
actual results, performance or achievements to differ materially
from those expressed or implied in the forward-looking information.
Important factors that could cause such differences include, but
are not limited to, the settlement having an adverse impact on our
operations. These factors should be carefully considered and
readers should not place undue reliance on the forward-looking
statements. Although the forward-looking statements contained in
this press release are based upon what management believes to be
reasonable assumptions, Real cannot assure readers that actual
results will be consistent with these forward-looking statements.
These forward-looking statements are made as of the date of this
press release, and Real assumes no obligation to update or revise
them to reflect new events or circumstances, except as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240408109590/en/
Investor inquiries, please contact: Ravi Jani Vice President,
Investor Relations and Financial Planning & Analysis
investors@therealbrokerage.com 908.280.2515
For media inquiries, please contact: Elisabeth Warrick Senior
Director, Marketing, Communications & Brand
press@therealbrokerage.com 201.564.4221
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