Bjorkman Sues eXp CEO for $20M, Defamation Over Claims

Key Takeaway

• Michael Bjorkman sues eXp Realty and CEO Glenn Sanford for defamation, seeking over $20 million in damages.
• Sanford accused Bjorkman of being a "sex trafficker and racist" on a company earnings call; criminal charges against Bjorkman were dismissed.
• The lawsuit is part of ongoing legal battles involving allegations of sexual assault at eXp Realty events.

Legal Battles Shake Real Estate Giant

In a dramatic twist within the real estate industry, Michael Bjorkman, a former agent of eXp Realty, has launched a lawsuit against his previous employer and its CEO, Glenn Sanford. This legal action, seeking over $20 million in damages, stems from allegations of defamation during a company earnings call where Sanford labeled Bjorkman and another agent as "two bad actors," with specific accusations of sex trafficking and racism directed at Bjorkman. This lawsuit adds another layer to the complex narrative surrounding eXp Realty, which has been embroiled in multiple lawsuits alleging sexual assault by Bjorkman and another agent, David Golden.

From Accusations to Legal Repercussions

The backdrop of this lawsuit is a series of grave accusations against Bjorkman, involving the alleged drugging and sexual assault of women at industry events. Despite the dismissal of criminal charges against him, the legal battles have intensified, with Bjorkman now turning the tables on eXp Realty and Sanford. The company has publicly denied the claims made in Bjorkman's lawsuit, asserting that they are baseless. However, the situation is complicated by additional allegations of unpaid dues and breaches of contract by eXp Realty towards Bjorkman, painting a picture of deep-seated issues within the company.

A Ripple Effect Through the Industry

The unfolding legal drama has significant implications for eXp Realty, a company that has rapidly grown to become a major player in the real estate industry. The accusations and subsequent lawsuits not only challenge the company's internal culture but also raise questions about its operational integrity and the broader industry's responsibility to ensure safe and professional environments. New York State Comptroller Thomas DiNapoli's call for an independent investigation into the brokerage underscores the potential for these issues to affect investor confidence and the company's market standing.

A Reflection on Industry Standards

This series of events serves as a stark reminder of the challenges facing the real estate industry in maintaining ethical standards and protecting all participants from misconduct. The legal battles involving eXp Realty, Sanford, Bjorkman, and Golden highlight the need for robust mechanisms to address and prevent such issues. As the industry continues to evolve, the resolution of these cases may set important precedents for how companies manage internal disputes, allegations of misconduct, and the balance between rapid growth and ethical operations.

Management Quotes

• Glenn Sanford, CEO of eXp World Holdings:

  "Two bad actors." "Sex trafficker and racist."