Plaintiffs Drop $75m Rico, Lanham Act Suit Against Anywhere, Coldwell Banker

A Minnesota couple has voluntarily dismissed a sweeping federal lawsuit that accused Anywhere Real Estate, Coldwell Banker Realty and numerous industry players of racketeering and false advertising.

Michael and Lauren Campoli submitted notice Wednesday to withdraw the case, which had sought more than $75 million in damages. No reason was given.

The suit — filed this past December in U.S. District Court in Minnesota — alleged violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act and the Lanham Act.

Plaintiffs claimed they were misled in a $3.3 million home sale in Deephaven, a Minneapolis suburb. Their complaint alleged that Coldwell Banker, its agents and executives, and other firms conspired to forge documents, conceal missing earnest money and manipulate escrow records.

At the center of the dispute was an all-cash offer submitted through a shell company — Fairways and Greens LLC — by buyers Jesse and Lee Bull, represented by broker Joel Burger of Wexford Real Estate.

The Campolis alleged the Bulls failed to provide a $100,000 earnest money deposit and then produced falsified paperwork to show otherwise.

Coldwell Banker was accused of going as far as placing $100,000 of its own funds in escrow to create the impression the buyers had fulfilled their obligation. The plaintiffs also alleged the company and its staff breached fiduciary duties by prioritizing commissions over clients’ interests and by participating in what they described as a coordinated scheme.

In addition to Anywhere, Coldwell Banker and Wexford Real Estate, the suit named a broad slate of defendants, including Burnet Title, TrustFunds LLC, Northstar MLS, TitleNexus, UBS Financial Services, UBS Bank, UMB Bank and several executives at those companies.

The Campolis argued the alleged conduct reflected systemic problems in the real estate industry, where financial incentives can undermine fiduciary obligations. They claimed the defendants’ advertising and marketing misrepresented agents as trustworthy and client-focused — constituting a violation of the Lanham Act.