According to the Complaint, RealtyShares owned and operated an online investment platform for real estate crowd funding services. The RealtyShares Platform enabled investors to purchase shares in private real estate investments, provided investors access to a range of real estate investment options and allowed users to browse, view, finalize, and manage real estate investments online.
The Complaint arises out of Defendants' solicitation of investors in 2016 to purchase debt securities relating to a loan to Ingersoll Financial, LLC and in or around 2018 to purchase debt securities relating to loans involving Franchise Growth, LLC, including a loan involving a Church's Chicken in Owensboro, Kentucky. The Complaint alleges that in soliciting these investments, Defendants knowingly or recklessly misrepresented material facts and/or omitted to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading, in violation of federal and state law.
Plaintiffs filed an amended Complaint on March 5, 2020. On April 2, the Court issued an Order appointing Lead Plaintiffs and Counsel. On August 5, the Company Defendant notified the Court that they had filed a petition for bankruptcy relief in the Northern District of California. On December 16, the Court granted Defendants' motions to stay proceedings pending the bankruptcy proceedings.