Impact of Lawsuits on Resources

The response to the lawsuits involving major brokerages will significantly diminish the resources that would have gone into evolving, advancing, and investing in agent and consumer experiences over the next several years. This will stall out advancements and dynamic new initiatives, as brokerages will be dedicating resources to resolving or fighting these cases. The impact of the cases extends to third-party technology companies, as brokerages' reduced resources may limit their ability to invest in or partner with new technologies for a period of time. For brokerages in a thin-margin business, settlements in the millions of dollars represent a substantial loss that could have been used for technological advancements or M&A activities. As a result, the industry will experience an impact and a shift in resources for a period of time.