Los Angeles City Employees’ Retirement System, et al. v. Glenn Sanford, et al.

BLB&G represents plaintiff Los Angeles City Employees’ Retirement System in this derivative action brought on behalf of eXp World Holdings, Inc. (“eXp” or the “Company”).  The operative complaint, filed on October 8, 2024, alleges that certain officers and directors of eXp breached their fiduciary duty of oversight by failing to ensure that the Company had in place reasonable reporting and information systems that would have allowed eXp’s officers and the Board to know about and prevent acts of sexual assault and misconduct, and by failing to appropriately address this misconduct when it was brought to the defendants’ attention. The complaint further alleges that certain defendants actively covered up the misconduct for their own personal financial gain, and retaliated against individuals who spoke out, including a former board member turned whistleblower.

The case was filed in October 2024. On January 16, 2026, Chancellor McCormick denied Defendants’ motions to dismiss in significant part. In a precedent-setting decision, the Court ruled that directors’ duty of oversight extends to investigating and remediating claims of workplace sexual misconduct and that failure to do so could constitute a breach of fiduciary duty by corporate officers and directors. The case is believed to be the first decision by the Court of Chancery upholding claims of alleged corporate governance oversight failures stemming from claims of sexual misconduct.