Social Media Investment Pitch Class Action Gets Revived Again

The daughter of an allegedly defrauded investor can proceed with a proposed class action over a real estate offering on social media, the Ninth Circuit said in reinstating the case a second time.

Christine Pino adequately alleged subjective and objective falsity in statements that investments would earn a 15% return on an annual basis, the US Court of Appeals for the Ninth Circuit said Tuesday.

The appeals court in 2022 held that Cardone Capital and its founder-CEO Grant Cardone, who allegedly posted about the investment on Instagram and YouTube, were statutory “sellers” potentially subject to liability for making false prospectus ...