{"id":3688,"date":"2022-11-15T19:30:27","date_gmt":"2022-11-15T19:30:27","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/11\/15\/gary-keller-sued-by-former-kw-ceo-for-300-million\/"},"modified":"2025-03-13T02:48:02","modified_gmt":"2025-03-13T02:48:02","slug":"gary-keller-sued-by-former-kw-ceo-for-300-million","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/11\/15\/gary-keller-sued-by-former-kw-ceo-for-300-million\/","title":{"rendered":"Gary Keller sued by former KW CEO for $300 million"},"content":{"rendered":"\n

Former Keller Williams <\/strong>CEO John Davis has filed a lawsuit against real estate firm Keller Williams and some of the firm\u2019s executives, including co-founder Gary Keller and president Josh Team. The lawsuit was prompted by Davis’ desire to \u201crestore his reputation and clear his good name\u201d after sexual misconduct allegations<\/a> against him surfaced this past spring. <\/p>\n\n\n\n

Davis is looking to recover $300 million in damages via the lawsuit for what he claims is a loss of career opportunities after leaving Keller Williams and the loss from selling his businesses at allegedly reduced prices. The lawsuit was filed on October 27 in the U.S. District Court in Fort Worth, Texas.<\/p>\n\n\n\n

According to Paul Omodt, a spokesperson for Davis, his client had to wait until this fall to file the suit due to a non-disparagement clause in his contract with Keller Williams, which expired in early November.<\/p>\n\n\n\n

\u201cThis is the way we have to have his voice heard,\u201d Omodt said regarding the lawsuit.<\/p>\n\n\n\n

In the filing, Davis states that he resigned from his position at Keller Williams due to a disagreement with Gary Keller over a business strategy that he felt would hurt the income generated by Keller Williams offices. <\/p>\n\n\n\n

In response to his resignation, Davis alleges that Keller and Team smeared him and withheld Inga Dow\u2019s accusations of sexual misconduct from him as he was negotiating the sale of his KW market center regions following his resignation. This resulted in tens of millions in financial losses, according to Davis.<\/p>\n\n\n\n

Dow, who was the CEO of multiple Keller Williams offices, is also named as a defendant in the suit, along with KW, Team and Keller.<\/p>\n\n\n\n

\u201cThis case arises out of the perverted use of the judicial process by Dow, a Keller Williams franchise owner who mismanaged her businesses and then sought to sell them for more than their true value,\u201d the complaint reads.<\/p>\n\n\n\n

According to the complaint, after stepping down as CEO in January of 2019<\/a>, Davis was set to sell his \u201chighly profitable\u201d Keller Williams market center regions to Smokey Garret. However, the deal was rejected by Keller Williams though Keller and Team. <\/p>\n\n\n\n

The lawsuit alleges that Dow disclosed her \u201cmalicious and false allegations against Davis\u201d to Keller Williams, Keller and Team while Davis was negotiating the sale of his own businesses to Keller Williams and related entities, but that the three \u201cfraudulently omitted\u201d those allegations from Davis, forcing him to sell the businesses \u201cfor tens of millions of dollars less than the previously negotiated sale, and well below their actual value,\u201d while also harming Davis\u2019 reputation.<\/p>\n\n\n\n

Attorneys for Davis allege that after Dow\u2019s allegations surfaced, Keller Williams, Keller and Team \u201cfalsely insinuat[ed]\u201d that Davis was fired from the company because of Dow\u2019s allegations.<\/p>\n\n\n\n

In the complaint, Davis remains adamant that the sexual misconduct allegations are false. Omodt added that they have recorded proof that Dow lied about the allegations.<\/p>\n\n\n\n

\u201cDuring the discovery process, we have her tape with her words saying that she made this up, accusing Davis of rape and sexual misconduct, and her lawyers went along with it, and Keller Williams didn\u2019t correct it and they were the ones that had the tapes,\u201d Omodt said.<\/p>\n\n\n\n

Instead of being fired due to Dow\u2019s allegations, the complaint states that Davis resigned due to a disagreement with Keller about establishing an across-the-board market cap, which is the amount an agent pays to be part of the Keller Williams franchise and to work out of a particular office or \u201cmarket center.\u201d Davis felt the market cap was \u201clikely to significantly damage profitability for franchise owners and agents.\u201d <\/p>\n\n\n\n

According to Davis, this is exactly what happened to Dow\u2019s businesses, drastically bringing down the overall value of her offices.<\/p>\n\n\n\n

According to the complaint, Dow implemented Keller\u2019s market cap strategy and \u201ctried to sell her market centers shortly thereafter, but because of the decrease in cash flow, her businesses were not worth the price that she was asking.\u201d <\/p>\n\n\n\n

The complaint states that while lowering the market cap has the potential to attract more agents to a market center, it can also reduce a center\u2019s income.<\/p>\n\n\n\n

\u201cTo simplify, if a market center owner decides to reduce their cap by half, they have just reduced their income by half,\u201d the complaint reads.<\/p>\n\n\n\n

\u201cGary\u2019s strategy had repercussions for Keller Williams executives such as Inga Dow because it devalued the value of her market center,\u201d Omodt said. \u201cThat led to Inga being unable to get the price she wanted for her business, and to come up with a lie to take down those that she thought kept her from being successful, including John Davis.\u201d<\/p>\n\n\n\n

In addition, the complaint also alleges abuse of process and tortious interference with prospective relations against Dow; fraud by omission, breach of contract, civil conspiracy, tortious interference with contract, breach of fiduciary duty, and breach of good faith and fair dealing against Keller; fraud by omission and breach of contract against Keller Williams; and fraud by omission, civil conspiracy and tortious interference with contract against Team.<\/p>\n\n\n\n

Darryl Frost, a spokesperson for Keller Williams, responded by email to the allegations in the lawsuit, stating: \u201cWe are aware of the lawsuit. Mr. Davis\u2019 attempt to involve Keller Williams in his quest to clear his name is unfortunate.\u00a0As this is ongoing litigation, we do not intend to comment any further at this time.\u201d<\/p>\n\n\n\n

Jacob Kring, an attorney for Team, refused to comment on the lawsuit. Lawyers for Dow had not responded to a request for comment at the time of the story\u2019s publication.<\/p>\n\n\n\n

The suit demands a trial by jury.<\/p>\n\n\n\n

\u201dWe look forward to getting more discovery, and we look forward to all the things that will come out in a court of law,\u201d Omodt said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Former Keller Williams CEO John Davis filed a $300 million lawsuit against Keller Williams and some of the firm\u2019s executives, including co-founder Gary Keller and president Josh Team.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-3688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nGary Keller sued by former KW CEO for $300 million - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"After facing sexual misconduct allegations, former KW CEO John Davis looks to "restore his reputation" through his lawsuit against KW\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/preprod.realtrends.com\/blog\/2022\/11\/15\/gary-keller-sued-by-former-kw-ceo-for-300-million\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gary Keller sued by former KW CEO for $300 million\" \/>\n<meta property=\"og:description\" content=\"After facing sexual misconduct allegations, former KW CEO John Davis looks to "restore his reputation" through his lawsuit against KW\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preprod.realtrends.com\/blog\/2022\/11\/15\/gary-keller-sued-by-former-kw-ceo-for-300-million\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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