Class Action Lawsuit Against Grant Cardone Dismissed Again by LA Federal Judge

A class action lawsuit against Grant Cardone, a prominent multifamily real estate magnate and influential figure in social media, has been dismissed for the second time in two years.

Who and why initiated the litigation: In 2020, Luis Pino, a resident of Inglewood, California, who had invested $10,000 in Cardone Capital's real estate funds in 2019, filed a class action lawsuit against the company, its CEO Grant Cardone, and two of its funds. The lawsuit alleged that Cardone had misled investors about the risks and potential returns of the funds. The lawsuit was initially dismissed, but an appeals court reinstated it in 2021.

In June, Luis Pino passed away. His daughter, Christine Pino, continued the legal battle by becoming the new plaintiff in the lawsuit and filing an amended complaint.

The case against Cardone: The Pinos’ lawsuit contended that Cardone misled investors on social media by allegedly exaggerating investor returns, understating financial liability, and failing to fully disclose the fees he collected. The lawsuit also claimed that Cardone disregarded a warning from the Securities and Exchange Commission about potentially misleading promises regarding investor returns.

The judge’s decision: Last week, Los Angeles Federal Judge John Walter ruled that Christine Pino could not file another amended complaint, effectively bringing an end to her legal claim against Cardone and his entities.

In his ruling, Judge Walter determined that Christine Pino’s lawsuit had disclaimed allegations of fraud, making it difficult for her to argue that Cardone had knowingly misrepresented the returns and potential distributions to investors. Additionally, the ruling stated that Cardone’s social media posts did not provide conclusive evidence that he had been forthright about investors' financial obligations and the fees collected by Cardone Capital.

What the real estate magnate had to say: Grant Cardone, on a video posted on his YouTube channel, expressed his satisfaction with the dismissal of Pino’s suit. In addition to that, Cardone clarified that the only investor, out of almost 14,000, that sued him was Luis Pino, and he highlighted the fact that there was no misrepresentation nor any over-promotion. 

Furthermore, Cardone revealed that he spent over $1 million defending himself against the lawsuit and highlighted the significant damage the legal ordeal had caused to his reputation, businesses, employees, partners, and investors.