Exp Moves To Dismiss Fraud Allegations In Acevedo Suit

After being dragged back into the Acevedo sexual assualt lawsuit, eXp Realty and its parent company eXp World Holdings are again seeking to dismiss the claims against them. 

In late October, the Acevedo suit plaintiffs filed their third amended complaint, in which they accused eXp of fraudulent misrepresentation in regards to their handling of the investigation into the plaintiffs’ claims of sexual assault. 

Originally filed in February 2023, and first amended shortly thereafter, the suit centers around claims from four women that  suspended eXp agent David Golden, now-former eXp agent Michael Bjorkman and eXp agent Brent Gove violated federal sex trafficking laws by ignoring or participating in alleged sexual assaults. Over the course of the lawsuit’s three year tenure, eXp and its founder Glenn Sanford have been accused of negligent hiring, however these claims against Sanford and his firm, have been dismissed. 

In their third amended complaint, which arose after the completion of discovery, the plaintiffs claimed that they have evidence that their sexual assault claims were not investigated. In the amended complaint,  the plaintiffs claimed that eXp executives lied both privately and publicly about investigating their allegations of sexual assault and harassment. 

The new claims cite evidence uncovered during discovery, which includes notes from a call between eXp’s senior vice president of agent compliance Cory Haggard and Bjorkman stating that the firm was “not investigating.” Both Haggard and Jim Nuth, another eXp executive who was also on the call, noted during their depositions that this point was conveyed during the call. 

In its filing, eXp notes that the plaintiffs agree that the firm took statements from the platings and looked into their allegations, claiming that this is evidence of action taken. The filing also notes that it has since separated itself from both Bjorkman and Golden, claiming that it acted “as soon as the accusers brought (incidents) to our attention” 

Additionally, eXp notes in the filing that in addition to taking written statements, it also spoke with legal counsel, offered to speak to witnesses, and held meetings with its Agent Compliance Committee. 

“Being unhappy with the manner in which the investigation was conducted, or the results of the investigation, are simply not the same thing as the eXp entities falsely representing that an investigation was being conducted,” the filing states. 

In addition, eXp argues that the plaintiffs have failed to meet the legal standard of fraud with the allegations they have made, claiming that they have “made no allegation” that any of the executives deposed were speaking on behalf of the company when they made those statements. 

If the judge does not dismiss the fraud claim as eXp has requested, the firm is asking that the court delays the trail to allow for more discovery, a move the plaintiffs are opposing as the suit has already been delayed five times. 

In an emailed statement, an eXp spokesperson wrote that the claims are “entirely without merit” and that it intends to “defend the case vigorously.”

“eXp is committed to maintaining a workplace and community that is inclusive, respectful, and aligned with our core values,” the spokesperson added. “We have robust policies in place to address misconduct and retaliation, and we do not tolerate behavior that violates those standards.”