Article Summary

A federal judge denied eXp Realty’s motion to dismiss a fraud claim by four women who allege the company lied about investigating their sexual assault reports against two former agents. The judge found sufficient evidence of misrepresentations by leadership, including statements that no investigation would occur. Negligent hiring claims against eXp and its founder were previously dismissed. AI Summary

A federal judge has denied eXp Realty’s request to dismiss a fraud claim brought by four women who say the company lied about investigating their allegations of sexual assault by two former agents.

U.S. District Court Judge André Birotte Jr. ruled this week that the fraudulent misrepresentation claim could move forward — including allegations that eXp Realty and its parent company eXp World Holdings made false statements to keep plaintiffs from leaving the firm.

The lawsuit — originally filed in February 2023 — centers on claims that suspended eXp agent David Golden and now-former agent Michael Bjorkman violated federal sex trafficking laws. The women say the men drugged and sexually assaulted them at company events.

A third agent, Brent Gove, has also been named as having allegedly participated in or ignored the offenses.

During the three-year span of the lawsuit, eXp and its founder Glenn Sanford faced allegations of negligent hiring. But these claims against Sanford and the company were ultimately dismissed.

Plaintiffs claim they reported assaults to...

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