Fathom Holdings Reaches Settlement in Nationwide Commission Case

Fathom Holdings Reaches Settlement to Enhance Business Focus

Fathom Realty, a subsidiary of Fathom Holdings Inc. (Nasdaq: FTHM), has announced a significant national settlement regarding claims from Burnett v. The National Association of Realtors., et al. This initiative underscores the company’s commitment to ensuring that their agents can focus on providing exceptional service to their clients, free from the distractions of ongoing legal battles.

Financial Commitment Under the Settlement

In a spirit of transparency, Fathom Holdings has decided to disclose the terms of the settlement, although they believe it to be immaterial in terms of GAAP. The settlement requires Fathom Realty to contribute a total of $2,950,000 spread over specific dates: $500,000 into a fund following court approval, $500,000 due shortly thereafter, and $1,950,000 payable on a future date. The company expresses confidence in their ability to meet these financial commitments without compromising ongoing business operations.

A Firm Resolution to Change

As part of the resolution process, Fathom Realty has agreed to comply with the rule alterations imposed by the National Association of Realtors. This step is pivotal for aligning the company with best practices and ensuring adherence to new industry standards.

CEO Comments on the Settlement

Marco Fregenal, CEO of Fathom Holdings, stressed the importance of this settlement. He stated, "Fathom Realty was founded on the principle of delivering unparalleled support to our agents. This settlement provides a prudent path forward, allowing our agents to concentrate on serving their clients while alleviating the pressures of litigation." His comments reaffirm the commitment to maintaining high service standards amidst change.

Importance of Business Integrity

While the settlement does not signify an admission of liability, Fathom Holdings maintains that they never participated in any conspiracy concerning commission inflation. The company's flat-fee model stands as evidence that there was no incentive to engage in such practices. This viewpoint reinforces their integrative approach to real estate service and ethical business conduct.

Future Focus for Fathom Holdings

The decision to settle is viewed as a strategic move to evade further legal costs and minimize distractions, enabling the executive team to focus on growth and enhancing service quality for agents and clients alike. Fathom Holdings intends to continue expanding its offerings in the real estate market.

About Fathom Holdings Inc.

Fathom Holdings Inc. operates as a cutting-edge technology-driven real estate services platform. The company's unique features encompass residential brokerage, mortgage services, title, and SaaS options specifically designed for brokerage firms and agents. Central to their operations is their proprietary software, intelliAgent, which streamlines processes and enhances efficiency.

Commitment to Stakeholders

Fathom's brands, which include Fathom Realty, Encompass Lending, intelliAgent, LiveBy, Real Results, and Verus Title, are all crafted with the intent to deliver unparalleled service and technological innovation. This commitment helps ensure that agents and clients thrive in an increasingly competitive environment.

Frequently Asked Questions

What is the nature of the settlement reached by Fathom Holdings?

The settlement involves a total financial commitment of $2,950,000, addressing claims related to commission practices in the real estate sector.

Why did Fathom Holdings decide to settle?

Fathom Holdings opted to settle to alleviate the long-term distractions associated with litigation and to continue focusing on enhancing service for their clients and agents.

Does this settlement imply any wrongdoing by Fathom Holdings?

No, the company asserts that entering the settlement does not equate to an admission of liability or acknowledgment of the validity of the claims against them.

What changes will Fathom Realty implement as part of this settlement?

As part of the agreement, Fathom Realty has committed to complying with new rule changes instituted by the National Association of Realtors.

How does this settlement impact Fathom Holdings' financial standing?

Fathom Holdings believes that they will generate sufficient funds to cover the settlement payments without disrupting their ongoing business operations.

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