Home News Former Keller Williams CEO sues company, founder, D-FW franchise owner for $300 million

Former Keller Williams CEO sues company, founder, D-FW franchise owner for $300 million

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The former CEO of Austin-based real estate giant Keller Williams Realty is suing the company and a North Texas franchise owner after he alleged he was sexually assaulted earlier this year.

Former CEO John Davis is seeking at least $300 million in a new lawsuit filed in federal court for the Northern District of Texas to compensate for lost career opportunities and reputational damage.

Inga Dow, who owns Keller Williams offices in Fort Worth and Johnson Counties, sued Davis, Keller Williams, and Executive Chairman Gary Keller She also included D-FW’s operating company and local owners as defendants.

In a new lawsuit, Davis alleges that Dow falsely accused him of sexual assault for forcing him to sell his business for more than it was worth after he tried unsuccessfully to sell it.

The Davis case followed a September 2 decision by U.S. District Judge Mark Pittman to arbitrate Dow’s claims against Keller Williams and Gary Keller. He has suspended proceedings against Davis and the other defendants pending arbitration.

In its September opinion, Pittman wrote that Davis and the other defendants were not parties to the licensing agreements between Dow and Keller Williams and therefore would not be subject to arbitration.

Omodt’s Paul Omodt said, “This decision leaves Dow’s false and malicious allegations against Davis unresolved, possibly indefinitely, and jeopardizes Davis’ livelihood commensurate with his reputation and former position.” It puts Davis in a terrible position as his ability to stand is further impaired.” & Associates Critical Communications LLC on behalf of Davis. He said Davis has not spoken to the media.

Omot said the termination of Davis’ disgrace and non-compete clause with Keller-Williams allowed him to sue and prove Dow’s allegations to be false.

Now it’s our turn. We can legally tell our story,” said Omot.

Davis’ lawsuit states that he met Dow around July 1996, before he joined Keller Williams, and they dated from 1998 to 2004. Davis’ lawsuit alleges that Dow made false claims. In 1998, Dow says she made false allegations about an affair with her aunt, admitting months later that they were fabricated.Attempts to contact Dow and her attorney were successful. did not do it.

“Dow’s allegations in the federal lawsuit would lead us to believe that the sexual encounters between Dow and Davis were involuntary, non-consensual, isolated or almost non-existent. “This is far from the truth,” the lawsuit states.

Mo Anderson, John Davis, Gary Keller, Chris Heller, Mary Tennant, Mark Willis. 2015 after the announcement that Keller Williams Realty became the world’s largest real estate franchise. (Brian Berser)

Davis’ lawsuit also alleges that Keller Williams failed to disclose Dow’s claims to Davis while negotiating the sale of his own business to the company in 2020. According to Davis’ lawsuit, the company rejected a deal in which he sold them to another Keller-Williams operator for about $46 million, and he sold them to Gary Keller for tens of millions less.

The lawsuit alleges that Keller Williams declined the first deal because of Dow’s allegations.

Keller Williams spokesman Darryl Frost said: Davis’ attempt to involve Keller Williams in his quest to clear his name is disappointing. As this is an ongoing lawsuit, we will not be commenting further at this time. “

The lawsuit accuses Dow of a business strategy implemented by Gary Keller as the reason it was unable to sell the business. (the fee that agents pay to the Keller-Williams office, used in , depending on the suit.

Davis’ lawsuit alleges that Dow adopted Keller’s management strategy of lowering market center caps, causing her base to suffer financially. She tried, but her business wasn’t worth the price she was asking because it reduced cash flow, the lawsuit says.

“At this point, her desperation has drawn a clear moral and legal line to coerce Davis, Keller Williams, Keller, and others associated with Keller Williams with whom Dow has animosity. exceeded,” the lawsuit said.

According to the lawsuit, Davis did not agree with the strategy, so he resigned in January 2019, becoming the first and only CEO to step down under Keller and completely separate from the company.

Keller did not take his resignation lightly, according to the lawsuit. Josh Team, former president of Keller Williams, was also named in Davis’ lawsuit. He demoted or fired those who stood by his views and promoted those who spoke ill of him. The team did not immediately respond to requests for comment.

The lawsuit alleges that the firm, Keller and the team facilitated Dow’s nefarious schemes when they engaged in an ongoing smear campaign to tarnish Davis’ reputation in the real estate industry. and silenced those associated with Keller Williams who held Davis in high esteem. “

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