The corporate denied wrongdoing and stated it had agreed to settle with plaintiffs in an try to maneuver on and proceed rising the enterprise.
Whether or not it’s refining your online business mannequin, mastering new applied sciences, or discovering methods to capitalize on the following market surge, Inman Join New York will put together you to take daring steps ahead. The Subsequent Chapter is about to start. Be a part of it. Be part of us and 1000’s of actual property leaders Jan. 22-24, 2025.
The settlements are nonetheless coming in.
Fathom Realty can pay $2.95 million and comply with the modifications outlined within the Nationwide Affiliation of Realtors settlement settlement in a bid to settle its personal authorized woes, the corporate introduced this week.
Fathom, a subsidiary of the general public firm Fathom Holdings, was among the many dozens of brokerages and franchises that exceeded $2 billion in gross sales quantity in 2022 and due to this fact was required to achieve its personal settlement with homeseller plaintiffs focusing on the true property business with class-action lawsuits.
“Fathom Realty was founded on the principle of delivering unparalleled support to our agents,” CEO Marco Fregenal stated in an announcement. “We believe that this settlement represents the most prudent way forward, enabling our agents to focus on their clients without the distraction of prolonged litigation.”
Fathom Holdings, a publicly traded firm, stated it wasn’t required to reveal the phrases of its settlement, however that it selected to take action within the title of transparency.
The corporate can pay $500,000 inside 5 days of the settlement being authorized.
One other $500,000 will probably be deposited by Oct. 1, 2025, and $1.95 million by Oct. 1, 2026.
“The company believes that it has, and will generate, adequate funds to make these payments without compromising its business,” the corporate stated.
The corporate stated it wasn’t admitting legal responsibility or guilt associated to the claims made towards it and dozens of different actual property firms within the sprawling listing of class-action lawsuits that focused the way in which actual property brokers receives a commission.
“We continue to assert that Fathom never participated in any conspiracy to inflate commissions and continue to believe that due to our flat-fee model, there was no incentive to join any such conspiracy,” Fregenal stated.
Slightly, he stated, the choice to settle would assist the corporate transfer on.
“Entering into a settlement now has the benefits of avoiding ongoing legal fees and removing the demand on the executive team’s time, allowing us to focus on growing our business and ensuring our agents continue to have the opportunity to excel in their service to clients,” Fregenal stated.
