A federal judge in Chicago has gutted most of a discrimination and retaliation lawsuit filed by a former National Association of Realtors employee, sharply narrowing the case against the influential trade group. The ruling trims the plaintiff's federal claims and leaves only a much slimmer path for any remaining contract-related dispute in the U.S. District Court for the Northern District of Illinois.
Judge's ruling
U.S. District Judge Georgia Alexakis granted NAR's motion to dismiss major counts and ordered that key claims be dismissed with prejudice, according to Crain's Chicago Business. Dismissed with prejudice means several federal claims tied to discrimination and retaliation cannot be refiled. At least one state-law contract theory remains on a separate track and could either stay in federal court or be left for a state court to sort out, as described in the coverage.
How the case started
The suit was first filed in 2024 by Roshani Sheth, who says she worked at the Realtors Information Network, a unit tied to NAR, from 2014 through 2019. She previously reached a settlement with the organization in December 2019 before later turning to federal litigation. Court records and prior reporting describe an earlier round of motions and an April 2025 opinion that had already narrowed parts of her complaint, according to Inman.
What Sheth alleged
In her amended complaint, Sheth alleged that supervisors and an outside strategic partner made lewd comments and advances toward her, that a senior HR leader repeatedly labeled her an “immigrant” even after she said she was born in the Chicagoland area, and that NAR later failed to provide the neutral references required under the 2019 settlement, conduct she says harmed her career. Those allegations appear in the court filings, including the amended complaint posted on Scribd. Industry coverage has also summarized the claims, including reporting by Real Estate News.
Why the judge tossed the claims
Alexakis concluded that Sheth had not plausibly connected her protected complaints to the actions she labeled retaliatory, writing that she had “failed to identify an adverse action” by NAR that met federal pleading standards. The court also rejected her attempt to link anonymous harassing text messages to the trade group, finding that the complaint lacked factual detail about who sent the messages or whether the sender was acting as an agent of NAR. The opinion and its reasoning are laid out in the court record on Justia.
Why it matters now
The ruling wipes away a prominent federal employment-law flashpoint for NAR at a time when the group is still working to repair its image after a series of leadership departures and intense public scrutiny tied to earlier reporting and litigation. Major outlets and industry coverage have chronicled the association's leadership shakeups and the pressure that followed stories on workplace culture and high-profile legal challenges. For that broader backdrop, see reporting from Fortune.
Legal takeaway
Coverage notes that dismissals with prejudice effectively bar Sheth from re-filing those same federal claims, sharply narrowing what is left of her case. NAR issued a brief statement saying it was “pleased” with the court's decision, according to HousingWire. Any surviving state-law contract issues are expected to proceed on a different procedural track or be litigated separately.
Next steps
It is not yet clear whether Sheth will appeal the federal dismissal or focus on any remaining claims in state court, and her legal team did not immediately respond to requests for comment. Earlier in the case, Sheth indicated she intended to keep pursuing remedies, and the docket already reflects multiple amendments and motions in front of Judge Alexakis. That procedural back-and-forth could shape her next moves, a timeline previously summarized by Inman.
