Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
Attempt to expand Batton is denied
An attempt by plaintiffs in the Batton case to file a second amended complaint, and thereby add more plaintiffs, has been denied by overseeing Judge LaShonda Hunt.
Plaintiffs had filed several months back a request to submit a second amended complaint in order to add multiple new state-level claims and 24 new plaintiffs. Defendants had then filed back in January urging the judge to deny the “untimely” request.
“The Court previously relied on Plaintiffs’ representations and should continue to hold them to those and reject their unjustifiably belated attempt…to greatly expand the scope of the case and take it back to square one,” defendants had written in their joint filing.
In her denial of the plaintiffs request, Hunt stated that the additional state law claims “will not be allowed because of Plaintiffs’ delay in making the request, the prejudicial effect of the timing and scope of the amendments on Defendants, the discovery process, and the overall progress of the case, and the absence of any real hardship to Plaintiffs if the claims are not added.”
Hunt also noted that in terms of the plaintiffs’ reasoning for adding new plaintiffs, it was “speculative” and contingent on the class certification stage, which has not been done yet. She said this matter could be revisited upon the entering of the class certification stage, as at that time “the scope of Plaintiffs’ case will be clarified and the need to add new plaintiffs will no longer be speculative or contingent.”
Investor sues Redfin over Rocket merger
Rocket Companies’ acquisition of Redfin is facing some potential setbacks as a Redfin investor has filed a suit against the company.
Investor Bruce Miller sued Redfin and its board of directors, alleging that the company misled investors by omitting financial details of both companies and the merged businesses.
The court filings state that Miller seeks to prevent the merger before the June 4 shareholder vote. If the deal gets the green light, Miller will seek rescission or will pursue compensation for damages. He alleges negligence and concealment, claiming that Redfin failed to “communicate accurate and truthful information” as it closed the deal.
Miller’s lawyers stated that he is requesting the June 4 vote be postponed until parties “(disclose) the material information discussed above which has been omitted.”
The law firm Halper Sadeh—which specializes in aid to defrauded investors—announced an “investigation” into the sale on the same day Miller filed the suit.
