According to the Complaint, RealtyShares, Inc. 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 or around 2018 to purchase debt securities relating to loans involving Franchise Growth-related securities, 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.

On May 25, 2021, the Court issued an Order staying the case pending resolution of the RealtyShares bankruptcy proceedings in the Northern District of California. Claims against two of the individual Defendants were dismissed without prejudice.