Former Keller Williams Realty CEO John Davis has been cleared of sexual misconduct allegations dating back to 1998, the Dallas Morning News reported.
The accusations were brought in 2022 by Inga Dow, a former Keller Williams franchisee. Dow sued Davis, company founder Gary Keller and others, alleging nearly two decades of misconduct.
Davis refuted the allegations and subsequently filed a $300 million fraud claim against Dow, Keller, former president Josh Team and the company, citing damage to his career and reputation.
Dow retracted her accusations against Davis in an affidavit in November.
“In the lawsuit, I made statements about Mr. Davis that wrongly accused him of misconduct including harassment, sexual assault and rape,” Dow said in the affidavit. “I fully retract these statements and apologize to Mr. Davis.”
Davis, in turn, dismissed his claims against Dow but continues to go after his old firm. Last summer, Davis filed a racketeering lawsuit against Keller Williams, alleging the brokerage committed fraud and financial abuse on the part of Keller and Team. In November, he added accusations of embezzlement against Keller.
Davis accused the firm of inflating crucial profitability metrics to deceive individuals into purchasing Keller Williams Regions and Market Centers. Allegedly, once franchisees signed contracts, they were subjected to financial exploitation. Franchisees were required to adopt Keller Williams’ market cap, pay escalating technology fees and purchase unnecessary goods and services, such as training and coaching from affiliated entities, the lawsuit claims.
Davis, who left the company in 2019, amended the lawsuit in November, adding accusations of embezzlement. He claimed that Gary Keller misappropriated fees collected from company franchisees, diverting those funds for personal ventures and creating new Keller Williams businesses through his holding company KWx. The accusations go beyond financial improprieties, asserting that Keller directed fees to benefit his son John Keller.
Keller Williams has denied Davis’ allegations, calling them “baseless” and an attempt to “get more press coverage.”
—Quinn Donoghue
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