According to the Complaint, Cardone Capital, LLC provides real estate investment opportunities to the so-called “everyday investor” through real estate crowdfunding. According to its website, Cardone Capital “finds the deals, negotiates the purchase and financing, and closes the deal” and generates rental payments from creditworthy tenants to pay monthly cash distributions to investors. Investors invest in Cardone Capital’s equity funds, which have been formed to acquire interests in income earning real estate.

The Complaint alleges that throughout the Class Period, the Company made materially false and misleading statements regarding (1) whether investors would obtain a 15% internal rate of return on their investments; (2) the amounts of monthly distributions they would receive; and (3) investors’ debt obligations. The Complaint further alleges that the Company made materially false and misleading statements in the offering documents and omitted to state material facts relating to how the acquisition of properties to be owned by Fund V and Fund VI would be financed and the interest Cardone would charge the funds for loaning “the aggregate principal balance” to acquire those properties.

On December 18, 2020, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an Amended Complaint on February 19, 2021. Defendants filed a Motion to Dismiss the Amended Complaint on March 15. On April 27, the Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed with prejudice. On May 28, Lead Plaintiff filed a Notice of Appeal to the United States Court of Appeals for the Ninth Circuit, citing their intention to appeal the District Court's Dismissal Order.

On December 21, 2022, the Court of Appeals affirmed in part and reversed in part the District Court's Dismissal Order. The case was remanded for further proceedings.

On June 8, 2023, the Court issued an Order granting a Motion to substitute Lead Plaintiff. Lead Plaintiff filed a second amended Complaint on June 26. Defendants filed a Motion to Dismiss the second amended Complaint on July 17. On October 4, the Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed with Prejudice. On October 11, the Court entered Final Judgment in favor of the Defendants.

On November 8, 2023, Lead Plaintiff filed a Notice of Appeal to the United States Court of Appeals for the Ninth Circuit, citing their intention to appeal the District Court's Final Judgment entry. On June 10, 2025, the Court of Appeals reversed the District Court's ruling.