"The updated complaint also adds one new cause of action, fraudulent misrepresentation, which is lodged against eXp Realty and eXp World Holdings. According to the third amended complaint, via its agent agreement, eXp contractually promised to promptly investigate reports of harassment or assault. However, the plaintiffs claim that although eXp repeatedly said it was investigating their complaints, no investigation occurred."
"They say they believed eXp was handling the issue and as a result continued to cooperate with and remain affiliated with eXp, and not take other protective measures. In support of this cause of action, the plaintiffs claim that despite what eXp's agent contact and own operating procedures state, eXp declined to interview witnesses identified by the plaintiffs, take sworn statements, or request statements from Bjorkman and Golden."
"Additionally, the plaintiffs allege that Sanford and other eXp senior leaders took steps to preserve Bjorkman's economic position rather than remove him from the company. They claim that Sanford directed eXp's Chief Legal Officer Jim Bramble to accelerate Bjorkman's vesting so Bjorkman could keep receiving revenue share despite the allegations, and that he inserted himself into the Agent Compliance Committee and advocated that Bjorkman be allowed to return to active status."
An additional plaintiff, identified as Megan Farrell-Nelson, was added to the complaint alongside previously unnamed Jane Doe plaintiffs. The amended complaint adds a fraudulent misrepresentation claim against eXp Realty and eXp World Holdings, alleging eXp contractually promised to promptly investigate harassment or assault reports but did not. Plaintiffs claim they relied on eXp’s assurances and remained affiliated instead of taking protective measures. The complaint alleges eXp declined to interview witnesses, take sworn statements, or request statements from accused agents. Plaintiffs further allege senior leaders preserved an accused agent’s economic position by accelerating vesting and advocating his return. The case was originally filed in February 2023 and previously included negligent hiring, retention, and supervision claims.
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