MIAMI, April 29, 2024--(BUSINESS WIRE)--Douglas Elliman Inc. (NYSE: DOUG) today announced it has entered into a settlement agreement to resolve on a nationwide basis the pending class action litigation on behalf of sellers relating to real estate brokerage fees in the Gibson and Umpa cases pending in the Western District of Missouri (the "Actions").

Under the terms of the settlement agreement, Douglas Elliman has agreed to pay $7.75 million within 30 business days of preliminary approval of the settlement by the Court and up to two additional $5 million contingent payments between December 31, 2025 and December 31, 2027. The settlement agreement is not an admission of liability, or of the validity of any claim, and the Company denies the material allegations asserted against it.

"The settlement agreement reflects Douglas Elliman’s commitment to mitigating future uncertainties and limiting legal costs, which will benefit our Company, agents and stockholders," said Howard M. Lorber, Chairman and Chief Executive Officer of Douglas Elliman. "Our global network of leading agents and luxury brand continue to position Douglas Elliman for future success as real estate markets stabilize. We remain confident our differentiated business position will enable continued growth over the long term."

As part of the settlement agreement, Douglas Elliman has agreed to make certain changes in its underlying business practices. These changes are consistent with the business changes Douglas Elliman’s competitors agreed to make in their respective settlements of similar litigation, many of which were already longstanding Douglas Elliman policies. For additional information, the Company has filed a Current Report on Form 8-K with the Securities and Exchange Commission today that includes the settlement agreement.

The settlement agreement resolves all claims on a nationwide basis in the Actions and similar claims in other lawsuits alleging claims on behalf of sellers against Douglas Elliman and its subsidiaries and releases the Company, its subsidiaries and affiliated agents from such claims.

The settlement agreement remains subject to preliminary and final court approval and will become effective upon final approval by the court.

About Douglas Elliman Inc.

Douglas Elliman Inc. (NYSE: DOUG, "Douglas Elliman") owns Douglas Elliman Realty, LLC, which is one of the largest residential brokerage companies in the United States with operations in New York, Florida, California, Texas, Colorado, Nevada, Massachusetts, Connecticut, Maryland, Virginia, and Washington, D.C. In addition, Douglas Elliman sources, uses and invests in early-stage, disruptive property technology ("PropTech") solutions and companies and provides other real estate services, including development marketing, property management and settlement and escrow services in select markets. Additional information concerning Douglas Elliman is available on its website, investors.elliman.com.