Joint Equity Committee of Investors of Real Estate Partners, Inc. v. Coldwell Banker Real Estate Corp.

ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION AND DENYING DEFENDANTS’ MOTION TO STRIKE

Plaintiffs Bradley B. Larsen, et al. (“Plaintiffs”) seek to represent a class of investors who lost money in a fraudulent real estate securities scheme. Before the Court is Plaintiffs’ Motion for Class Certification (“Motion”). Also before the Court is the Motion of Defendants Coldwell Banker Real Estate Corporation and Coldwell Banker Real Estate LLC (together, “Coldwell,” “Coldwell Banker,” or “Defendants”) to “Strike or Disregard the 132 Putative Class Member Declarations” (“Motion to Strike or Disregard”) supporting Plaintiffs’ Motion. After considering the arguments and papers submitted, the Motion to Strike or Disregard is DENIED and the Motion for Class Certification is GRANTED in part and DENIED in part.

BACKGROUND

This securities fraud class action arises from the wrongdoing of a company called Real Estate Partners (“REP”). The thrust of Plaintiffs’ case is that Coldwell was aware of REP’s fraudulent scheme and either aided it or failed to stop it. A brief summary of the scheme and the somewhat complex relationship between REP and Coldwell…