EXP World Holdings Enters Material Definitive Agreement

TL;DR

EXP World Holdings signed a big deal on Dec 9, 2024. Filing includes financials.

AI Summary

On December 9, 2024, EXP World Holdings, Inc. entered into a material definitive agreement. The filing also includes financial statements and exhibits related to this agreement. The company is incorporated in Delaware and its principal executive offices are located in Bellingham, WA.

Why It Matters

This filing indicates a significant new agreement for EXP World Holdings, Inc., which could impact its future operations and financial performance.

Risk Assessment

Risk Level: medium — Entering into a material definitive agreement can introduce new risks and opportunities that are not yet fully understood.

Key Players & Entities

• EXP World Holdings, Inc. (company) — Registrant
• December 9, 2024 (date) — Date of earliest event reported
• Delaware (jurisdiction) — State of incorporation
• Bellingham, WA (location) — Address of principal executive offices

FAQ

Key Financial Figures

• $0.00001 — nge on which registered Common Stock, $0.00001 par value per share EXPI The Nasdaq
• $34 million — pay, into a qualified settlement fund, $34 million (the "Settlement Amount"), which will b
• $34.0 million — the Settlement Agreement; the expected $34.0 million pre-tax charge for the Settlement Amoun

Filing Documents

• expi-20241209x8k.htm (8-K) — 56KB
• expi-20241209xex10d1.htm (EX-10.1) — 168KB
• expi-20241209x8k001.jpg (GRAPHIC) — 9KB
• 0001558370-25-000062.txt ( ) — 398KB
• expi-20241209.xsd (EX-101.SCH) — 3KB
• expi-20241209_lab.xml (EX-101.LAB) — 15KB
• expi-20241209_pre.xml (EX-101.PRE) — 10KB
• expi-20241209x8k_htm.xml (XML) — 5KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. Settlement of Litigation On December 9, 2024, eXp World Holdings, Inc. (the "Company") and its subsidiaries, eXp Realty, LLC, eXp Realty of California, Inc., eXp Realty of Southern California, Inc., eXp Realty of Greater Los Angeles, Inc., and eXp Realty of Northern California, Inc. (collectively, "eXp"),entered into a definitive settlement agreement (the "Settlement Agreement") to resolve on a nationwide basis the pending class action lawsuit brought by 1925 Hooper LLC, et al. (United States District Court for the Northern District of Georgia, Atlanta Division Case No. 1:23-cv-05392- SEG) (the "Lawsuit"). The settlement resolves all claims in the Lawsuit and similar claims on a nationwide basis against the Company (collectively, the "Claims") and release eXp, its subsidiaries, related entities and affiliates, and their independent contractor real estate agents in the United States from the Claims. As set forth in the Settlement Agreement, eXp has agreed to pay, into a qualified settlement fund, $34 million (the "Settlement Amount"), which will be paid as follows: 50% of the Settlement Amount within 30 business days after preliminary court approval of the Settlement Agreement, which the Company expects to occur in the first or second quarter of 2024, and 50% of the Settlement Amount on or before the one-year anniversary of initial settlement payment, which amounts will be released from escrow subject to the terms of the Settlement Agreement. In addition, eXp agreed to make certain changes to its business practices and emphasize certain practices that have been a part of eXp's longstanding policies and practices, including: reminding its agents that eXp has no rule requiring agents to make or accept offers of compensation from buyer representatives requiring its agents to disclose to clients that commissions are not set by law and are fully negotiable prohibiting its buyer agents from claiming buyer agent

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are often identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project," "anticipate," "may," "will," "would" and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. Forward-looking statements include statements related to the Lawsuit and the Settlement Agreement, including preliminary and final court approval of the Settlement Agreement, the amount and timing of payments pursuant to the Settlement Agreement; the expected $34.0 million pre-tax charge for the Settlement Amount and the impact of such charge on the Company's results of operations and cash flows; and changes to the business practices of the Company and the impact that such changes may have on the business or results of operations of the Company. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily accurately indicate the times at which such performance or results may be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, without limitation, the ability of the parties to obtain preliminary and final court approval of the proposed Settlement and the final terms being substantially the same as those set forth in the proposed Settlement, and those risks and uncertainties described in the sections entitled "Risk Fact

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits. Exhibit No. Description 10.1 Settlement Agreement, dated December 9, 2024, by and among eXp World Holdings, Inc. (the "Company") and its subsidiaries, eXp Realty, LLC, eXp Realty of California, Inc., eXp Realty of Southern California, Inc., eXp Realty of Greater Los Angeles, Inc., and eXp Realty of Northern California, Inc. and Plaintiffs 1925 Hooper LLC, Robert J. Arko and Andrew M. Moore 104 Inline XBRL for the cover page of this Current Report on Form 8-K

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. eXp World Holdings, Inc. (Registrant) Date: January 8, 2025 /s/ James Bramble James Bramble Chief Legal Counsel

View Full Filing

View this 8-K filing on SEC EDGAR