As described more fully in Note 15 to the consolidated financial statements of the Form 10-K for the year ended December 31, 2022, filed by Anywhere Real Estate Inc. (the “Company”), under the caption “Commitments and Contingencies—Litigation—Antitrust Litigation,” the Company, various national brokerage franchisors and other industry organizations are named defendants in several putative class action lawsuits that allege violation of certain state and federal antitrust laws, including the action captioned Moehrl, Cole, Darnell, Ramey, Umpa and Ruh v. The National Association of Realtors, Realogy Holdings Corp., Homeservices of America, Inc., BHH Affiliates, LLC, The Long & Foster Companies, Inc., RE/MAX LLC, and Keller Williams Realty, Inc. (which has also been referred to as the Moehrl litigation).
On March 29, 2023, the U.S. District Court for the Northern District of Illinois granted class certification to the Moehrl plaintiffs. The Court certified a damages class covering sellers of residential real estate (with certain exceptions) who paid a commission to a brokerage affiliated with a corporate defendant between March 6, 2015 and December 31, 2020 in any of 20 multiple listing services (“MLSs”) located in various parts of the country, including an estimated five of the country’s ten largest MLSs. This class is substantially larger than the class certified in the pending antitrust litigation in the U.S. District Court for the Western District of Missouri (Burnett, Hendrickson, Breit, Trupiano, and Keel v. The National Association of Realtors, Realogy Holdings Corp., Homeservices of America, Inc., BHH Affiliates LLC, HSF Affiliates, LLC, RE/MAX LLC, and Keller Williams Realty, Inc.). The Court also certified an injunctive class covering current and future owners of residential real estate in the covered jurisdictions who are presently listing or will in the future list their home for sale in one of the 20 MLSs.
The Company intends to promptly petition the United States Court of Appeals for the Seventh Circuit to pursue an interlocutory appeal of the decision on class certification, but there is no assurance such appeal will be granted. The Company disputes the plaintiffs’ allegations against it in the Moerhl action and the other pending antitrust litigation, believes that it has substantial defenses to both liability and damage assertions, and is vigorously defending these actions.
Litigation is inherently unpredictable and subject to substantial uncertainties and unfavorable resolutions could occur. Adverse developments or outcomes in current or future litigation, in particular pending antitrust and Telephone Consumer Protection Act litigation could have a material adverse effect on our business, results of operations or financial condition, either individually or in the aggregate.