By Patricia Jones Grant Cardone, Cardone Capital and two real estate investment funds are facing a certified federal class action over statements allegedly made while promoting investments to ordinary retail investors.
The lawsuit claims investors were given misleading information about expected returns, cash distributions and responsibility for the funds’ debts. Cardone and the other defendants deny the allegations and maintain that the funds have performed in line with expectations.
The case has not been settled, and investors are not currently eligible to submit claims for payments. A jury trial is scheduled to begin on March 9, 2027.
Who Filed the Lawsuit?
The case is titled Pino v. Cardone Capital, LLC, et al. It was originally filed in September 2020 in the US District Court for the Central District of California.
Luis Pino brought the case after investing in Cardone Equity Fund V and Cardone Equity Fund VI. Following his death, his daughter and successor-in-interest, Christine Pino, continued the lawsuit as the named plaintiff.
The defendants are:
- Grant Cardone
- Cardone Capital, LLC
- Cardone Equity Fund V, LLC
- Cardone Equity Fund VI, LLC
The funds raised money through public offerings promoted as opportunities for everyday investors to participate in large real estate investments.
What Does the Class Action Allege?
The lawsuit alleges that Grant Cardone and Cardone Capital promoted the funds through Instagram, YouTube and other public communications using projections that lacked a reasonable foundation.
According to the plaintiff, prospective investors were told they could receive returns exceeding 15% after fees, annual cash distributions of approximately 6% to 8%, and opportunities to double or triple their investments.
The complaint alleges that Cardone did not genuinely believe some of these projections when he made them. It also claims that earlier Cardone funds had not produced comparable results and that some properties intended for Funds V and VI had not yet been purchased when the projections were promoted.
These allegations have not been proved at trial.
Why Is an SEC Letter Important?
A major part of the case concerns a July 2018 letter from the US Securities and Exchange Commission.
The lawsuit alleges that the SEC informed the defendants that they did not appear to have sufficient support for projecting a 15% annualised return and related distributions in the formal offering materials.
Cardone Capital removed the projections from those materials. However, the plaintiff claims Cardone continued making similar statements through social media without informing potential investors about the SEC’s concern.
The lawsuit argues that failing to mention the SEC letter made later promotional statements misleading. The defendants dispute that interpretation and deny violating federal securities law.
What Is the Dispute About the Funds’ Debt?
The plaintiff also challenges statements suggesting that Grant Cardone personally carried responsibility for the funds’ debts.
According to the lawsuit, investors could reasonably understand those statements to mean their invested money was protected from the properties’ debt obligations.
The plaintiff argues that the funds themselves were responsible for the debts and that investor capital and property income could be used to meet those obligations.
Cardone maintains that investors received detailed offering documents explaining the investments, expenses, risks and debt structures.
Why Was the Lawsuit Revived?
The district court dismissed the case twice. However, the Ninth Circuit Court of Appeals reversed the second dismissal in June 2025.
The appeals court did not decide that Cardone had misled investors. It ruled only that the complaint contained sufficient allegations for the disputed claims to continue.
The court found that the plaintiff had plausibly alleged that Cardone did not believe certain return projections, that the projections may have been objectively unsupported and that the SEC letter could represent an important omitted fact.
The case was then returned to the district court for further proceedings.
Who Is Included in the Class?
In March 2026, the district court certified the case as a class action.
The class generally includes anyone who purchased or otherwise acquired an interest in Cardone Equity Fund V or Cardone Equity Fund VI through their public offerings.
Grant Cardone, the defendant companies, their directors, officers, employees and agents are excluded. Investors who properly requested exclusion are also outside the class.
The deadline to opt out was July 14, 2026. Investors who did not exclude themselves remain part of the case and will generally be bound by its outcome.
Is There a Grant Cardone Settlement Payout?
No. There is currently no settlement fund, claim form or guaranteed payment.
If the plaintiff wins or the parties reach a settlement, class members will receive additional instructions. The official class notice states that an investor would need to tender, or give up, their shares in Funds V and VI to receive money or benefits if the plaintiff succeeds.
No class member will be forced to end an investment. An investor who keeps the shares may remain invested but might not receive compensation through the lawsuit.
How Have Cardone and His Companies Responded?
The defendants deny making materially false or misleading statements. They say the potential benefits and risks were adequately disclosed in the funds’ offering documents.
They also maintain that investors have not suffered losses and have received monthly cash distributions. According to the defence, investors may ultimately receive more by keeping their interests and benefiting from future property sales than by surrendering their shares through the lawsuit.
These arguments will be tested through evidence and, unless the case is resolved earlier, at trial.
What Happens Next?
The trial is currently scheduled for March 9, 2027. A jury will decide whether the challenged statements or omissions violated federal securities law and whether the class is entitled to relief.
Class certification does not mean Grant Cardone has been found liable. It simply allows qualifying investors’ claims to be handled together.
For now, affected investors do not need to file a payment claim. They should retain their investment records and watch for future notices concerning a settlement, trial judgment or changes to the case schedule.