The Eighth Circuit Court of Appeals has affirmed final approval of the landmark 2024 Sitzer-Burnett class-action settlement, dismissing challenges to its legal standing, payout structure and the inclusion of home buyers.
Source: Original report
Appellate Panel Rejects Objections
A three-judge panel of the Eighth Circuit Court of Appeals has upheld the 2024 Sitzer-Burnett class-action settlement, affirming the district court's November 2024 final approval decision. The ruling, issued Wednesday, rejected multiple objector arguments that had sought to unravel the deal.
Critics of the settlement had raised several concerns before the appellate panel, contending that the plaintiffs lacked proper legal standing, that the monetary payout and its proposed distribution were insufficient, and that home buyers should not have been included in the settlement class. The court dismissed each of these challenges.
What the Settlement Requires
The National Association of Realtors (NAR) and co-defendant HomeServices of America successfully defended the agreement's terms during oral arguments held in January 2026.
Under the settlement's terms, NAR agreed to pay $418 million over four years to the plaintiff class. The organization also put in place two key practice changes for Realtor members:
- Written buyer broker agreements became mandatory.
- Offers of cooperative compensation are no longer permitted to be communicated through Realtor-affiliated multiple listing services.
In return, NAR secured liability releases covering more than one million NAR members, along with state, territorial and local Realtor associations, association-owned MLSs, NAR affiliate organizations, and brokerages with an NAR member as principal that recorded residential transaction volume of $2 billion or below in 2022. MLSs and brokerages that opted into the agreement also received liability protection.
NAR Response
Following the ruling, NAR expressed satisfaction with the outcome. A spokesperson stated the organization is committed to maintaining fair, transparent and consumer-friendly real estate markets while continuing to support its members nationwide.
What This Means for the Industry
The appellate decision effectively closes a significant chapter in one of the most consequential antitrust cases in U.S. residential real estate history. With the settlement now firmly upheld, the practice changes NAR implemented in 2024—particularly around buyer representation agreements and MLS compensation rules—remain in effect across the country, including in Florida markets where these shifts have reshaped how agents structure buyer relationships.
Barring further legal challenges, the ruling signals that the industry reforms tied to the Sitzer-Burnett litigation are now settled law rather than contested policy.
