In California Suit Federal Judge Certifies Class Action of Investors Against Coldwell Banker Real Estate Corporation, et al.; Case No. SACV 10-401 AG (MLGx)

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United States District Court Judge Andrew J. Guilford certified a class of investors in a class action pending in Santa Ana, California. The five named plaintiffs in the case seek, on behalf of the class, more than $50 million in damages from defendants Coldwell Banker Real Estate Corporation and Coldwell Banker Real Estate LLC in connection with a real estate-based investment scheme allegedly perpetrated by Real Estate Partners, Inc. and a Coldwell Banker Commercial franchisee doing business as Coldwell Banker Commercial REP. Plaintiffs and the class are represented by J. Mark Moore, H. Scott Leviant and Ira Spiro, of Spiro Moore LLP, and Michael R. Newhouse, Ruth L. Seroussi and Suzanne M. Henry, of Newhouse|Seroussi Attorneys, PC, in Los Angeles, CA.

"we believe the evidence that the Court considered in reaching its ruling speaks for itself."

On March 28, 2012, in the United States District Court Central District of California, Case No. SACV 10-401 AG (MLGx), Judge Andrew J. Guilford certified a class of investors in a class action pending in Santa Ana. The five plaintiffs in the case, on behalf of approximately 1,300 individuals and entities that paid money to invest in any of seven investment funds, are represented by J. Mark Moore, H. Scott Leviant and Ira Spiro, of Spiro Moore LLP, and Michael R. Newhouse, Ruth L. Seroussi and Suzanne M. Henry, of Newhouse|Seroussi, Attorneys, PC. Both of the firms representing the plaintiffs and the class are located in Los Angeles, CA. The plaintiffs seek money damages from the Defendants Coldwell Banker Real Estate Corporation and Coldwell Banker Real Estate LLC (the “Coldwell Defendants”) in connection with a real estate-based investment scheme allegedly perpetrated by Real Estate Partners, Inc. (“REP”) and by a Coldwell Banker Commercial franchise doing business as Coldwell Banker Commercial REP (“CB/REP”). The Securities and Exchange Commission previously sued and obtained a judgment against now-bankrupt REP and some of its principals, Case No. SACV 07-1022 AG (RNBx).

It is alleged that REP and CB/REP used the Coldwell Banker name and marks to market and sell unregistered securities in seven real estate investment funds (the Investment Funds, including: Income Fund I, Income Fund II, Income Fund III, Unit Investment Business Trust I, Unit Investment Business Trust II, Equity Fund, or Growth Fund). Roughly 1,300 investors across the country ultimately invested approximately $50 million in the Investment Funds, and lost their money. More than 130 of these investors offered sworn testimony supporting Plaintiffs’ motion to the effect that they would not have invested if not for the Coldwell Defendants’ represented role in the investments. Plaintiffs also presented additional evidence including internal Coldwell Banker emails, as well as other documents and testimony.

Mr. Moore, a partner at boutique class action law firm Spiro Moore LLP, stated: “We and our clients obviously are quite pleased that the Court agreed that this matter should proceed as a class action and we believe the evidence that the Court considered in reaching its ruling speaks for itself.” The case is currently set for trial in August 2012. The 28-page certification order is available at http://www.spiromoore.com/larsen-v-coldwell-banker. More information about class counsel’s firms can be found at http://www.spiromoore.com and http://www.newhouseseroussi.com. Mr. Moore may be reached at (310) 235-2468 and Mr. Newhouse at (310) 684-3162.

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J. Mark Moore