The Scientology Money Project

Robbins Geller Rudman & Dowd LLP Files a Class Action Lawsuit Against Grant Cardone & Cardone Capital

The powerhouse law firm of Robbins Geller Rudman & Dowd LLP is going after the glib Scientologist hustler Grant Cardone and Cardone Capital. Scroll down to read the press release in PDF form

From the website of Robbins Geller Rudman & Dowd LLP:

Robbins Geller attorneys have shaped the law in the area of securities litigation and shareholder rights, and have recovered tens of billions of dollars on behalf of the Firm’s clients.  Robbins Geller’s record of success includes some of the largest recoveries in history:

  • Largest consumer class action recovery: $17+ billion (Volkswagen)
  • Largest securities class action recovery: $7.2 billion (Enron)
  • Largest antitrust class action recovery: $5.5 billion (Visa/Mastercard)
  • Largest securities class action recovery following a trial: $1.575 billion (HSBC/Household Int’l)
  • Largest pharmaceutical securities class action recovery: $1.21 billion (Valeant Pharmaceuticals International, Inc.)*
  • Largest stock option backdating recovery: $925 million (UnitedHealth Group)
  • Largest opt-out (non-class) securities action recovery: $657 million (WorldCom)
  • Largest privacy class action settlement: $650 million (Facebook, Inc.)*
  • Largest RMBS purchaser class action recovery: $500 million (Countrywide)
  • Largest personal contributions by individual defendants in a securities class action recovery: $237.5 million of $1.025 billion total recovery (American Realty Capital Properties, Inc.)
  • Largest merger & acquisition class action recovery: $200 million (Kinder Morgan)

Financial analyst Tom Nash’s video on the class action lawsuit against Cardone Capital. By analyzing Cardone’s published financials, a clear picture emerges of the actual under-performance versus promised returns of Cardone’s funds:

Tom McKay on the lawsuits against Cardone Capital:

4 replies »

  1. Perhaps Cardone is not really that big a fish after all. Here we are a week after the first strike suit has been filed, and there are only three suits. When a really big publicly traded company blows up, there are usually at least a dozen suits filed within 48 hours of a significant piece of bad news. Some law firms are reputed to keep filings completely filled out with everything but the date so that they can be the first to the courthouse, similar to the practice of writing an obituary for a prominent person when they are in declining health but not actually dead yet.

    Robbins, Geller, Rudman & Dowd are indeed the big fish in the industry. They’re the successor to the firm that employed Bill Lerach, who was the leading practitioner of this form of litigation. Lerach ultimately served time in prison and was disbarred for illegal behavior in pursuing some of these suits, and his ethical challenges were a main driver of the Private Securities Litigation Reform Act of 1995, which tried to make it harder to file bogus shareholder suits.

  2. The quest is whether GC personally guaranteed the loans… likely so… then he is in deep deep doo doo. His cashflow is shrinking due to lowered occupancy, and settlement will likely require full disgorgement of investor funds plus penalty bc he’s NOT going to trial…

  3. Cardone claims the debt is his — but as the lawsuits allege — he buys multifamily units as an individual using his own money for the down payment and borrows the balance. He then sells these to his funds. The sale allows Cardone to repaid with 6% interest. The fund pays off Grant’s loans when it buys the property from Grant. The debt belongs to the funds. Grant may leave some small percentage in the fund itself. We don’t know as there is no financial transparency. Cardone, in our opinion, is not a straight shooter.

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