In a David vs. Goliath battle that has taken a surprising turn, the lawyers who secured a historic $1.8 billion verdict against the National Association of Realtors (NAR) and brokerages are now aiming their sights at a formidable new target - Warren Buffett and his Berkshire Hathaway conglomerate.
This escalation comes after the lawyers filed suit against Berkshire Hathaway Energy, a major subsidiary of Buffett's empire, in a nationwide class-action lawsuit against NAR and several brokerages. While this new filing doesn't directly impact the existing Missouri case, it represents a strategic maneuver intended to pressure HomeServices of America, a Berkshire Hathaway Energy-owned brokerage, and potentially secure a larger national settlement.
The core of the legal battle lies in allegations of anti-competitive practices. The plaintiffs claim that NAR and the named brokerages, including HomeServices, artificially inflated real estate commissions in Missouri and other states through a specific commission structure. This alleged conspiracy, they argue, extends beyond NAR's limited financial resources and reaches the deep pockets of Berkshire Hathaway.
The plaintiffs' strategy is clear: by tying HomeServices and ultimately Berkshire Hathaway to the alleged scheme, they hope to secure a more substantial settlement than the combined $210 million already achieved from other defendants. NAR itself has limited financial resources compared to Berkshire's $160 billion war chest, making the conglomerate a more attractive target to recoup potential billions in damages.
While HomeServices declined to comment, Berkshire Hathaway did acknowledge the Missouri verdict and potential liabilities in its 2023 annual report. The company intends to vigorously appeal both the findings and the hefty damage award. This legal battle promises to be a protracted one, potentially taking years to resolve through appeals and further actions.
This development adds another layer of complexity to the already intricate legal landscape surrounding real estate commissions. While securing a multi-billion dollar verdict against NAR was a significant victory, the plaintiffs now face the formidable challenge of collecting these funds and overcoming potential appeals. This latest move against Berkshire Hathaway raises the stakes and injects even more drama into an already captivating legal saga.
It remains to be seen whether the plaintiffs' strategy of targeting Berkshire Hathaway will prove successful. This case underscores the tenacity of both sides and their unwavering commitment to their respective positions. Only time will tell who will ultimately emerge victorious in this high-stakes legal battle.
