Fathom Holdings Settles Commission Lawsuits
Fathom Realty, a subsidiary of Fathom Holdings Inc. (Nasdaq: FTHM), has reached a nationwide settlement related to claims in the Burnett v. The National Association of Realtors lawsuit. The company will pay a total of $2.95 million in three installments: $500,000 within 5 days of court approval, $500,000 by October 1, 2025, and $1.95 million by October 1, 2026. Fathom Realty has also agreed to adhere to rule changes proposed by the National Association of REALTORS.
CEO Marco Fregenal emphasized that this settlement is not an admission of liability or acknowledgment of claim validity. The company maintains it never participated in any conspiracy to inflate commissions. The settlement aims to avoid ongoing legal fees and allow the executive team to focus on business growth and agent support.
Fathom Realty, una sussidiaria di Fathom Holdings Inc. (Nasdaq: FTHM), ha raggiunto un accordo a livello nazionale relativo a reclami nel caso Burnett contro la National Association of Realtors. L'azienda pagherà un importo totale di 2,95 milioni di dollari in tre rate: 500.000 dollari entro 5 giorni dall'approvazione del tribunale, 500.000 dollari entro il 1 ottobre 2025 e 1,95 milioni di dollari entro il 1 ottobre 2026. Fathom Realty ha anche concordato di conformarsi ai cambiamenti delle regole proposti dalla National Association of REALTORS.
Il CEO Marco Fregenal ha sottolineato che questo accordo non costituisce un'ammissione di responsabilità né riconoscimento della validità del reclamo. L'azienda sostiene di non aver mai partecipato a nessuna cospirazione per gonfiare le commissioni. L'accordo mira a evitare spese legali continue e consentire al team esecutivo di concentrarsi sulla crescita aziendale e sul supporto agli agenti.
Fathom Realty, una subsidiaria de Fathom Holdings Inc. (Nasdaq: FTHM), ha alcanzado un acuerdo nacional relacionado con las reclamaciones en el caso Burnett contra la Asociación Nacional de Agentes Inmobiliarios. La empresa pagará un total de 2,95 millones de dólares en tres pagos: 500.000 dólares dentro de los 5 días posteriores a la aprobación del tribunal, 500.000 dólares antes del 1 de octubre de 2025, y 1,95 millones de dólares antes del 1 de octubre de 2026. Fathom Realty también ha acordado cumplir con los cambios de reglas propuestos por la Asociación Nacional de REALTORS.
El CEO Marco Fregenal enfatizó que este acuerdo no es una admisión de responsabilidad ni un reconocimiento de la validez de la reclamación. La empresa sostiene que nunca participó en ninguna conspiración para inflar las comisiones. El acuerdo tiene como objetivo evitar gastos legales continuos y permitir que el equipo ejecutivo se concentre en el crecimiento empresarial y el apoyo a los agentes.
Fathom Realty는 Fathom Holdings Inc. (Nasdaq: FTHM)의 자회사로, Burnett 대 전국 부동산 중개인 협회 소송과 관련하여 전국적인 합의에 도달했습니다. 회사는 총 295만 달러를 세 번에 나누어 지급할 예정입니다: 법원 승인 후 5일 이내에 50만 달러, 2025년 10월 1일까지 50만 달러, 그리고 2026년 10월 1일까지 195만 달러입니다. Fathom Realty는 또한 REALTOR 협회에서 제안한 규칙 변경 사항을 준수하기로 합의했습니다.
CEO 마르코 프레게날은 이번 합의가 책임 인정이나 주장 유효성에 대한 인정이 아니라고 강조했습니다. 회사는 수수료를 부풀리기 위한 어떤 음모에 참여한 적이 없다고 주장합니다. 이번 합의의 목적은 지속적인 법적 비용을 피하고 경영진이 사업 성장과 에이전트 지원에 집중할 수 있도록 하는 것입니다.
Fathom Realty, une filiale de Fathom Holdings Inc. (Nasdaq: FTHM), a conclu un accord national concernant les réclamations dans l'affaire Burnett contre la National Association of Realtors. L'entreprise paiera un montant total de 2,95 millions de dollars en trois versements : 500 000 dollars dans les 5 jours suivant l'approbation du tribunal, 500 000 dollars d'ici le 1er octobre 2025, et 1,95 million de dollars d'ici le 1er octobre 2026. Fathom Realty a également accepté de se conformer aux modifications de règles proposées par la National Association of REALTORS.
Le PDG Marco Fregenal a souligné que cet accord n'est pas une admission de responsabilité ni une reconnaissance de la validité de la réclamation. L'entreprise affirme qu'elle n'a jamais participé à aucune conspiration pour gonfler les commissions. L'objectif de l'accord est d'éviter des frais juridiques continus et de permettre à l'équipe exécutive de se concentrer sur la croissance de l'entreprise et le soutien aux agents.
Fathom Realty, eine Tochtergesellschaft von Fathom Holdings Inc. (Nasdaq: FTHM), hat eine bundesweite Einigung im Zusammenhang mit Ansprüchen in der Klage Burnett gegen die National Association of Realtors erzielt. Das Unternehmen wird insgesamt 2,95 Millionen Dollar in drei Raten zahlen: 500.000 Dollar innerhalb von 5 Tagen nach Genehmigung durch das Gericht, 500.000 Dollar bis zum 1. Oktober 2025 und 1,95 Millionen Dollar bis zum 1. Oktober 2026. Fathom Realty hat sich außerdem verpflichtet, die von der National Association of REALTORS vorgeschlagenen Regeländerungen zu befolgen.
CEO Marco Fregenal betonte, dass diese Einigung kein Eingeständnis von Haftung oder Anerkennung der Gültigkeit des Anspruchs darstellt. Das Unternehmen hält fest, dass es niemals an einer Verschwörung zur Inflierung von Provisionen beteiligt war. Die Einigung soll fortlaufende Rechtskosten vermeiden und dem Führungsteam ermöglichen, sich auf das Unternehmenswachstum und die Unterstützung der Agenten zu konzentrieren.
- Settlement amount considered immaterial in GAAP terms
- Company believes it can generate adequate funds for settlement payments without compromising business
- Settlement allows focus on business growth and agent support
- Avoids ongoing legal fees and executive time demands
- Total settlement payment of $2.95 million over three years
- Potential impact on short-term cash flow due to settlement payments
- Agreement to adhere to new National Association of REALTORS rule changes
Insights
The settlement of the commission lawsuit represents a significant development for Fathom Holdings. While the company maintains its innocence, the decision to settle is a strategic move to avoid prolonged litigation costs and distractions. The total settlement amount of
The agreement to adhere to NAR's rule changes suggests potential industry-wide shifts in real estate practices. This may require operational adjustments, but Fathom's flat-fee model could position it favorably in a changing landscape. The settlement's impact on Fathom's reputation and market position remains to be seen, but the company's proactive approach in resolving the matter may be viewed positively by stakeholders.
From a financial perspective, the settlement's impact appears relatively modest. Fathom's assertion that the amount is immaterial in GAAP terms suggests it won't significantly affect the company's financial health. The staggered payment structure (
However, investors should monitor how these payments might affect Fathom's growth initiatives and operational expenses. The company's confidence in generating adequate funds for these payments without compromising the business is reassuring, but it's important to watch for any impact on profitability or expansion plans in the coming years. The settlement's resolution could potentially remove a cloud of uncertainty, possibly leading to improved investor sentiment in the long term.
This settlement, part of a broader industry lawsuit, signals potential shifts in the real estate commission structure. Fathom's flat-fee model may actually position it advantageously in this evolving landscape. The agreement to adhere to NAR's rule changes could lead to increased transparency in commission structures across the industry, potentially benefiting consumers.
For Fathom, this could present an opportunity to highlight its existing transparent pricing model as a competitive advantage. However, the broader impact on the real estate market could include changes in how agents and brokers operate, potentially affecting commission rates and service structures. Investors should closely monitor how these industry-wide changes might influence Fathom's market position and growth strategy in the coming years.
While we believe the settlement amount is immaterial in GAAP terms, Fathom Holdings is disclosing the details in the spirit of transparency. As part of the settlement, Fathom Realty will pay
Fathom Realty has also agreed to adhere to the rule changes put forth by the National Association of REALTORS.
"Fathom Realty was founded on the principle of delivering unparalleled support to our agents. 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," stated Fathom Holdings CEO, Marco Fregenal. "Our unwavering commitment to providing excellent service to our agents, clients, and customers remains steadfast. As we proceed, it is important to note that this settlement is not an admission of liability or an acknowledgment of the validity of any claims made against us. 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. 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."
About Fathom Holdings Inc.
Fathom Holdings Inc. is a national, technology-driven, real estate services platform integrating residential brokerage, mortgage, title, and SaaS offerings to brokerages and agents by leveraging its proprietary cloud-based software, intelliAgent. The Company's brands include Fathom Realty, Encompass Lending, intelliAgent, LiveBy, Real Results, and Verus Title. For more information, visit www.FathomInc.com.
Cautionary Note Concerning Forward-Looking Statements
This press release contains "forward-looking statements," made pursuant to the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including: liquidity risk and the possibility the Company might have to raise more money; risks related to acquisitions and the integration of acquisition; risks related to general economic conditions, including interest rates; risks in effectively managing rapid growth in our business; reliance on key personnel; competitive risks; and the other risk factors set forth from time to time in our SEC filings, copies of which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Investor Contact:
Matt Glover
Gateway Group, Inc.
949-574-3860
FTHM@gateway-grp.com
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SOURCE Fathom Holdings Inc.
FAQ
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