LOS ANGELES — With a high-stakes trial originally slated to begin in late summer, a federal judge has significantly reshaped the sprawling legal battle involving real estate giant eXp World Holdings, its Chief Executive Officer Glenn Sanford, and subsidiary eXp Realty.
In a pivotal summary judgment ruling handed down by U.S. District Judge Andre Birotte, Jr. of the U.S. District Court for the Central District of California, the court trimmed several major liability claims against the corporate parent and its chief executive. However, the litigation—stemming from horrific allegations of drugging, sexual assault, and trafficking at a corporate-associated recruiting event—remains a formidable obstacle for the company, with core claims surviving to face a jury.
The lawsuit, widely known as the Roberts sex trafficking and assault suit, names eXp World Holdings, eXp Realty, Glenn Sanford, and two former star agents, Michael Bjorkman and David Golden, as defendants. As the legal teams pivot toward a newly established trial schedule, the complex web of corporate liability, individual accountability, and agency law is coming into sharper focus.
Main Facts: The Court’s Summary Judgment Breakdown
Judge Birotte’s extensive summary judgment ruling delivered a mixed bag of legal victories and setbacks for the defendants, parsing the distinct corporate entities and individual actors involved in the sprawling enterprise.
eXp World Holdings: Shielded from Several Major Claims
For eXp World Holdings—the parent company of eXp Realty—the ruling provided substantial legal relief. Judge Birotte released the holding company from federal claims tied to the Trafficking Victims Protection Reauthorization Act (TVPRA). The court determined that the plaintiffs failed to produce sufficient evidence demonstrating that the parent company had actual knowledge of, or knowingly benefited financially from, the alleged sex trafficking activities perpetrated by Bjorkman and Golden.
Furthermore, eXp World Holdings was completely absolved of vicarious liability claims, as well as accusations of negligent hiring, supervision, and retention. The court held that the evidence did not establish the requisite degree of corporate control by the parent company over the two former independent contractors to justify holding it legally responsible for their alleged personal misconduct.
Glenn Sanford: Partial Absolution, Lingering Individual Exposure
CEO Glenn Sanford also secured dismissals regarding vicarious liability and negligence claims. Judge Birotte agreed that the defense lacked sufficient evidence to prove Sanford exercised direct operational control over Bjorkman and Golden, or that he or the company should have anticipated their alleged propensity for sexual assault.
However, Sanford was not cleared under the TVPRA claims. The plaintiff, identified in court documents as Roberts, successfully brought forward evidence indicating that Sanford personally intervened to ensure that Michael Bjorkman’s substantial share of eXp’s lucrative Revenue Share Plan vested, despite mounting allegations and red flags surrounding the agent’s conduct. Judge Birotte ruled that this specific intervention created a genuine issue of material fact—paving the way for a jury to decide whether Sanford’s actions constituted culpable participation under the federal trafficking statute.
eXp Realty: Facing the Jury on Negligence and Vicarious Liability
While the holding company and CEO found relief from multiple counts, eXp Realty remains heavily exposed. The brokerage subsidiary was not dismissed from the TVPRA claims, nor was it freed from vicarious liability and negligence counts.
Addressing the vicarious liability claim, Judge Birotte noted a stark factual dispute regarding how much direct operational control eXp Realty exercised over Golden and Bjorkman. Although independent-contractor agreements explicitly stated that the agents acted on eXp Realty’s behalf strictly in connection with recruiting activities, the practical day-to-day enforcement and extent of that control remain heavily contested. Because the legal definition of "agency" hinges on factual determinations, the court denied eXp Realty’s motion for summary judgment on this count.
Regarding the negligent hiring, supervision, and retention claims, the judge acknowledged perceived weaknesses in the plaintiff’s evidentiary record. Nevertheless, he concluded that the threshold was met for a jury to weigh whether eXp Realty should have known about existing risks, whether the alleged misconduct bore a sufficient nexus to those risks, and whether the brokerage’s operational conduct directly contributed to Roberts’ injuries.
Bifurcated Trials
In addition to ruling on liability, Judge Birotte partially granted a request by former agents Bjorkman and Golden to sever their trial from the corporate defendants. The court determined that presenting internal corporate communications—including confidential board discussions, internal memos, and unverified allegations from other individuals regarding eXp’s handling of misconduct—would be profoundly and unfairly prejudicial to the individual agents.
Consequently, Bjorkman and Golden will face a separate trial, though they will be tried together because the allegations against them are deemed legally and factually intertwined.
Chronology: How We Got Here
The timeline of the Roberts litigation traces a turbulent path through the federal court system, marked by amendments, strategic settlements, and high-stakes media scrutiny.
- February 2020: A corporate-associated recruiting event hosted by prominent eXp recruiter Brent Gove—dubbed a "Freedom Summit" sunset cruise—takes place. According to the lawsuit, Roberts is given a pill by Golden’s girlfriend, who falsely claims it is Adderall. The substance is actually a powerful drug that induces a blackout. While incapacitated, Roberts alleges she was raped by Golden and Bjorkman.
- December 2023: The civil lawsuit is officially filed in federal court, drawing intense industry-wide attention following investigative reporting by The New York Times highlighting a pattern of predatory behavior associated with high-producing agents within the eXp network.
- May 2024: In an early legal win for the defense, Glenn Sanford and eXp corporate entities are completely dismissed from a prior iteration of the complaint.
- Late 2024 / Early 2025: Legal skirmishing intensifies as the plaintiffs file an amended complaint, successfully dragging eXp Realty, eXp World Holdings, and Glenn Sanford back into the center of the litigation.
- January 2026: Brent Gove, the host of the recruiting cruise, reaches a confidential settlement with the plaintiff, removing him as an active defendant in the lawsuit.
- August 2025 (Original Schedule): The trial was initially slated to begin on August 31, 2025. However, due to complex summary judgment motions and ongoing procedural adjustments, the court pushes the timeline back.
- Current Status: Following Judge Birotte’s recent summary judgment rulings, a status conference is set for September 18, with the jury trial officially scheduled to commence on October 19.
Official Responses and Corporate Posture
In the wake of the court’s decision, representatives for eXp World Holdings issued a carefully measured response, emphasizing the partial dismissals while preparing for the remaining courtroom battles.
In an emailed statement to industry publication HousingWire, an eXp spokesperson expressed satisfaction with the judicial filtering of the claims:
"We are pleased with the Court’s decision dismissing all of the plaintiff’s claims against [eXp World Holdings] and multiple claims against Glenn Sanford," the spokesperson stated.
While acknowledging that some elements of the lawsuit survived, the company doubled down on its commitment to fight the remaining allegations:
"While the Court noted that ‘the factual record is thin’ and that ‘there are factual weaknesses’ in claims against eXp Realty, it held that those facts will ultimately be determined by a jury. The Company intends to continue vigorously defending against these allegations and looks forward to presenting its case to the jury. Beyond that, the Company is not able to comment further regarding this ongoing litigation."
Attorneys for the plaintiff have not yet released a formal public statement regarding the court’s dismissal of the parent company claims, but legal analysts note that maintaining TVPRA claims against both the CEO and the primary operating brokerage gives the plaintiff a viable path to seek substantial damages before a federal jury.
Industry Implications and Broader Ramifications
The Roberts lawsuit stands as one of the most significant legal reckoning moments for a modern cloud-based residential brokerage. As the real estate industry shifts toward digital, decentralized operating models, the question of corporate accountability for the actions of top-producing independent contractors has become a central legal flashpoint.
1. The Real Estate Independent Contractor Dilemma
Traditional and cloud-based brokerages alike have long relied on independent contractor agreements to shield themselves from the day-to-day liabilities of their agents. However, this case underscores the legal dangers when high-volume producers are integrated deeply into corporate recruiting pipelines, equity incentive structures, and internal hierarchies. By allowing the agency and negligence claims against eXp Realty to proceed, the court has signaled that contractual labels ("independent contractor") will not automatically override the practical realities of corporate control and influence.
2. Executive Exposure and Corporate Governance
The survival of TVPRA claims against CEO Glenn Sanford—specifically tied to his alleged intervention regarding revenue-sharing vesting schedules—serves as a stark warning to executive leadership across corporate America. When leadership actively intervenes to protect or reward producers despite red flags or internal complaints, the legal separation between corporate entities and individual executives can rapidly erode.
3. Reputational and Cultural Fallout
For eXp World Holdings, which has built its brand on hyper-growth, aggressive agent incentives, and a tech-forward corporate culture, the litigation has cast a persistent shadow over its public relations and recruitment efforts. While the dismissal of the parent company and the exoneration of Sanford from multiple negligence claims provide talking points for corporate defense, the impending October jury trial ensures that the underlying, deeply troubling allegations will remain under intense public and media scrutiny for months to come.
As the legal teams prepare for the October 19 trial date, the real estate brokerage community will be watching closely. The final verdict will likely establish critical legal precedents regarding how far corporate liability extends in networked, independent-contractor sales organizations when agents cross the line from standard business operations into severe criminal misconduct.
