Editor’s note: The COURT REPORT is RISMedia’s weekly look at current and upcoming lawsuits, investigations and other legal developments around real estate.
eXp denied judgment ahead of trial, though Sanford scores win
Judge Andre Birotte of the federal central district of California ruled late last week that a jury will decide whether eXp is liable for an alleged “venture” by top recruiters, including negligent hiring, as a former agent claims she was drugged and assaulted at company events.
Denying eXp’s request that he essentially rule in their favor immediately on these issues, Birotte said that plaintiffs had established a “genuine dispute of material fact” on whether the brokerage was negligent in hiring the two men (Michael Bjorkman and David Golden, since separated from eXp) and whether it benefited from actions, which the plaintiff (Anya Roberts) claim were part of a recruiting scheme.
On the other hand, Birotte ruled that eXp Founder Glenn Sanford will not face the negligent hiring accusation or vicarious liability from the alleged sex trafficking venture, saying that plaintiffs’ only provided “unsupported speculation” on that count.
“The Court acknowledges that there are factual weaknesses in Roberts’ argument. However, weighing these facts is not appropriate for the Court at summary judgment,” Birotte wrote.
The trial, which had been set to begin at the end of the month, is also now being moved to October, with Birotte also agreeing to split Bjorkman and Golden’s trial from eXp and Sanford’s.
eXp has argued that it does not have the same responsibilities to vet or supervise agents as independent contractors, even as one supervisor admitted to being aware of previous allegations against one of the men.
Four other women making very similar allegations are also suing eXp and Sanford, represented by the same lawyers, with a trial set for early 2028. Those women have also successfully (so far) argued that eXp fraudulently misrepresented its investigation into Bjorkman and Golden’s conduct after the women reported it to Sanford and other eXp leadership.
Wyoming MLSs object to “blanket” data production from Burnett settlement
In a dispute that is part of the long trail of the commission lawsuit settlements, a group of Wyoming-based Realtor® associations and MLSs are arguing that their opt-in to the National Association of Realtors®’ (NAR) settlement agreement does not entitle plaintiffs’ attorneys to “wholesale” data production.
In a filing on Aug. 13, the group of five associations and three MLSs said they were not protesting “reasonable cooperation obligations” that were mandated through the agreement.
Rather, they are asking Judge Stephen R. Bough to disallow plaintiffs from requesting their data unless it is specific, limited and with “reasonable advance notice.”
“(Our) databases contain nonpublic listing information, historical fields, participant and subscriber information, private remarks, photographs and other media, and information supplied under MLS rules and contractual arrangements with private individuals,” they wrote. “The Wyoming Parties cannot adequately assess appropriate redactions, field limitations, confidentiality designations, or safeguards for private individuals unless the contemplated production is identified beforehand in clear and particular terms.”
According to the filing, NAR recently “circulated” a court document from 2024 and “suggested” MLSs direct third-party vendors that hold their data to designate some information as confidential.
“However, the Wyoming Parties were not included in the drafting process of that protective order and have not been provided sufficient request-specific information pursuant to any subpoenas,” they wrote.
The dispute comes after plaintiffs’ attorneys claimed that MLSs and third-party data providers were refusing to comply with the terms of the NAR settlement, which required them to continue providing data around the policies and practices at the center of the lawsuit—mostly related to commission rates.
Bough had not ruled on the request at press time.
Better.com founder sued by company in bitter back-and-forth over ouster
Vishal Garg, who was briefly the “main character” of the mortgage industry back in 2021 for his summary Zoom firing of hundreds of employees during the pandemic, is currently engaged in a high-profile fight with his former company after he was suddenly removed by the board, allegedly for poor performance.
Now, Better is suing Garg for alleged violations of securities laws, after Garg claimed that he had enough shareholder support to regain his old job and remove the board members who fired him. Better claims this “campaign of retribution” violated securities laws, including unlawful solicitation of shareholders. Better has publicly disputed whether Garg has that support.
The company is asking the court for a restraining order and an order forcing Garg to disclose and correct “materially false and misleading statements” Garg allegedly promulgated regarding his plan to retake the reins as CEO, his track record running the company and its financial conditions, among other things.
There had been no ruling on that request at press time.
Company billing $36 million from Burnett settlement argues for “special master” recusal
A legal administration company called JND Legal was contracted back in 2023 in the wake of the initial brokerage commission lawsuit settlements to administer practical and logistical elements, including informing class members through millions of postcards and digital outreach.
Over the next few years, the company billed almost $36 million for these services, which it noted expanded significantly as more and more companies settled or opted into agreements with plaintiffs after the trial verdict in late 2023.
But in a separate lawsuit in late 2025, JND was accused of participating in a kickpack scheme to profit off the lucrative class-action settlement business. The company has denied the allegations.
But Stephen R. Bough, the judge overseeing the Burnett settlement, ordered an independent audit of JND’s work in his case. JND subsequently sought to disqualify one of the “special masters” appointed to oversee the case, Chris Hellums, arguing he harbored personal and professional biases against the company from previous cases.
That culminated in a hearing last week, where JND appeared before Bough for around two hours. Bough had previously ordered JND to unseal and publicly file much of its billing and documentation related to the settlement.
Bough had not ruled on JND’s request at press time.
