Allegations of a Decades-Long Scheme
The Illinois lawsuit, first filed in 2021, accuses the National Association of Realtors (NAR) and major brokers and agents of orchestrating a conspiracy that suppressed competition in the housing market.
According to the complaint, rules requiring sellers who use NAR’s multiple listing service to make blanket compensation offers to buyers’ brokers effectively locked in commission rates. The result, plaintiffs argue, was inflated commissions that ultimately drove up home prices for buyers.
But the road to this proposed settlement has been anything but smooth.
Legal Hurdles and the “Indirect Purchaser” Barrier
Over five years, the homebuyers’ case has encountered repeated legal obstacles. Twice, federal antitrust claims were dismissed, with the court citing the U.S. Supreme Court’s Illinois Brick decision, which generally limits federal antitrust suits to direct purchasers of a price-fixed product.
In February 2024, an Illinois federal judge allowed certain state law claims in the plaintiffs’ amended complaint to proceed. However, the judge again rejected reworked federal antitrust claims, reiterating her earlier conclusion that the homebuyers were “indirect” purchasers under NAR’s commission structure.
In May, the court denied the buyers’ request to file a second amended complaint that would have added new state antitrust and consumer protection claims along with 24 additional plaintiffs.
