According to HousingWire, a federal judge has significantly narrowed the legal claims facing eXp World Holdings and CEO Glenn Sanford in a sex trafficking and assault lawsuit. The judge dismissed charges against eXp World Holdings related to the federal Trafficking Victims Protection Reauthorization Act and removed vicarious liability claims against both the holding company and Sanford. The ruling came just before what was originally scheduled to be the trial's start date.
The lawsuit centers on allegations involving two former eXp agents and dates back to a recruiting event in February 2020. The plaintiff claims that she was drugged and assaulted at this event. While Sanford and the holding company have been partially cleared, eXp Realty, the operating company, still faces several claims including vicarious liability and negligent hiring and retention charges. The judge found that there remained factual questions about how much control eXp Realty had over these agents that a jury should decide.
The judge did acknowledge that some of the evidence against eXp Realty shows weaknesses, but determined there was enough for a jury to potentially find that the company should have known about risks and that its conduct might have contributed to the plaintiff's injuries. Additionally, the judge ordered that the two former agents will have their own separate trial from the corporate defendants, but they will be tried together as a pair since their cases are closely connected.
The trial is now scheduled for October 19th, with a status conference set for mid-September. In a statement, eXp expressed satisfaction with the dismissals of claims against the parent company and Sanford, though the company acknowledged that eXp Realty will still need to defend itself before a jury.
What I am seeing locally in the Bay Area and across the East Bay is that employment lawsuits and operational controversies at national brokerages create uncertainty among agents and consumers alike. When major firms face this kind of legal scrutiny, it naturally affects conversations I have with both sides of transactions, and people pay attention to the reputation and management practices of the companies they work with or choose to list their homes through.
