Real Estate Industry Takes Fresh Hit With Verdict on Commissions

Zillow Group Inc. and other real estate stocks plunged after a Missouri jury struck a fresh blow against the battered industry, finding that the National Association of Realtors colluded to maintain high brokerage commissions.

The jury awarded nearly $1.8 billion in damages in the case, one of several recent lawsuits concerning how real estate agents are paid. The Justice Department is also scrutinizing the commission-sharing system, which typically puts home sellers on the hook for a 5% to 6% cut of the sale price, split between their agent and the representative for the buyer.

Read more: US Realtors’ Lucrative ...