Key facts
- Judge Andre Birotte Jr. dismissed certain claims against eXp World Holdings and CEO Glenn Sanford in a sex trafficking and assault lawsuit.
- eXp World Holdings was released from federal Trafficking Victims Protection Reauthorization Act (TVPRA) claims due to insufficient evidence of knowledge or benefit from alleged actions.
- Glenn Sanford and eXp Realty remain defendants on TVPRA claims, with evidence suggesting Sanford's potential involvement in ensuring a former agent's share vested despite allegations.
- Sanford and eXp World Holdings were cleared of vicarious liability and negligent hiring claims due to insufficient evidence of control or knowledge of the former agents' alleged actions.
- eXp Realty continues to face vicarious liability and negligent hiring claims, with a factual dispute over control of former agents Bjorkman and Golden.
- Former agents Michael Bjorkman and David Golden will have separate trials from the corporate defendants, though they will share a trial with each other.
- The trial, originally scheduled for August 31, is now set for October 19.
A judge has narrowed the scope of a sex trafficking and assault lawsuit against eXp World Holdings and its CEO, Glenn Sanford, just a week before the trial was initially set to begin.
In a ruling by Judge Andre Birotte Jr. of the U.S. District Court for the Central District of California, several claims against the company and its CEO were dismissed. eXp World Holdings was released from federal Trafficking Victims Protection Reauthorization Act (TVPRA) claims, as the court found insufficient evidence that the company knew about or benefited from the alleged actions of former agents Michael Bjorkman and David Golden.
However, Sanford and eXp Realty were not released from TVPRA claims. The plaintiff alleges that Sanford personally intervened to ensure Bjorkman’s revenue share vested despite the allegations, a claim the court found sufficient for a jury to consider. Despite this, both Sanford and the holding company were released from vicarious liability and negligent hiring, supervision, and retention claims, as the court determined there was insufficient evidence of control over Bjorkman and Golden or that they should have known about the risk of alleged sexual assault.
eXp Realty, however, continues to face vicarious liability and negligent hiring claims. The judge noted a factual dispute regarding the extent of control eXp Realty exercised over Bjorkman and Golden, particularly concerning their recruitment activities as independent contractors. The court also found enough evidence for a jury to potentially conclude that eXp Realty should have been aware of the risks and that its conduct may have contributed to the plaintiff's injuries.
Furthermore, Judge Birotte granted Bjorkman and Golden separate trials from the corporate defendants, citing potential prejudice from evidence concerning eXp's internal handling of allegations. Bjorkman and Golden will share one trial, as their allegations are considered intertwined. The trial, originally slated for August 31, has been rescheduled to October 19, with a status conference set for September 18.
An eXp spokesperson expressed satisfaction with the dismissal of claims against eXp World Holdings and some against Sanford, while acknowledging that remaining claims against eXp Realty will be determined by a jury. The company stated it intends to defend itself vigorously.