Replies to post #111680 on Savvy Trades and Investments

[researcher59]

RMAX - but this litigation against the NAR has been ongoing since 2019 and a major settlement was expected, so it's not anything new except maybe the size of the settlement. RMAX stock was near $45 just 3 years ago, so now at $7.50, lots of bad news related to diminishing commissions is fully priced in and then some, imho.

The RMAX 10K makes repeated references to the NAR rules and litigation -

For convenience, all of these lawsuits are collectively referred to as the “Moehrl-related antitrust litigations.” In the Moehrl Action, the plaintiffs allege that a NAR rule that requires brokers to make a blanket, non-negotiable offer of buyer broker compensation when listing a property, results in increased costs to sellers and is in violation of federal antitrust law. They further allege that certain defendants use their agreements with franchisees to require adherence to the NAR rule in violation of federal antitrust law. Amended complaints added allegations regarding buyer steering and non-disclosure of buyer-broker compensation to the buyer. While similar to the Moehrl Action, the Moehrl-related antitrust litigations also allege: state antitrust violations; and claims against a multiple listing service (MLS) defendant rather than NAR.