Grant Cardone's Previously Dismissed Lawsuit Is Back—And He Swears He'll Clear His Name

Crowdfunding syndicator and social media celebrity Grant Cardone is known for his robust self-promotion when engaging people to invest in his real estate projects. One lawsuit, initially filed in 2020 but dismissed in 2023, claimed the real estate celeb misled investors. The lawsuit is back on the table after a panel of three California U.S. appeals judges reversed the original decision.

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‘Overpromising Returns'

In 2020, Luis Pino sued Cardone and his Aventura-based company, Cardone Capital, as well as two real estate funds, alleging that Cardone had overpromised returns and failed to fully disclose the fees his company collected. Pino's daughter, Christine Pino, was named the new plaintiff in an amended lawsuit upon the death of her father, The Real Deal reports.

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Inglewood, California, resident Pino invested $10,000 in two of Cardone's funds, named in the complaint filed in Los Angeles federal court. Pino's attorneys did not respond to requests for comments by The Real Deal. Cardone, however, was more forthcoming, saying that Luis Pino refused Cardone's offer to return his $10,000 and that Pino was "happy with it."

"It is obvious to any savvy person that this is a legal attempt to get a monetary settlement from me, believing I will tap out to make negative publicity go away," Cardone told the outlet. "There has been no financial damage, and the investment is outperforming our objectives. I have spent millions to defend this frivolous lawsuit over a $10,000 investment and will continue to do so. Cardone Capital has one of the best performance records in the industry."

Cardone went on to claim that Cardone Capital had distributed $100 million to its investors over the past 12 months, including $20 million this month, with an average return of nearly 7%.

"During a time when syndicators have failed [and] are returning assets to lenders, and while REITs struggle with distributions and redemptions, Cardone Capital continues to make monthly and quarterly distributions," Cardone said. "We are on track to exceed all expectations previously targeted."

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A Warning

The three judges in Christine Pino's claim cite a letter from the Securities and Exchange Commission, which warned Cardone not to include projected investment returns and distributions from his offering memos. 

A 10 Million Social Media Following From Which To Recruit

Cardone's social media is a powerful recruiting tool. According to The Real Deal, he has 10 million followers across all his platforms, from which he often attracts small investors. He utilizes his media reach to sell minority stakes in his multifamily properties, which comprise thousands of units, as well as a Bitcoin fund owned by Cardone Capital and his affiliates. 

An Outspoken Critic Of Jerome Powell

Recently, Cardone has been an outspoken critic of Fed Chair Jerome Powell, accusing him of contributing to the housing crisis, specifically due to high interest rates, which Cardone claims have deterred people from buying homes despite a decline in inflation.

"He [Jerome Powell] has done more damage to the middle class and to housing in this country than any other single Fed or any decision that has ever been made out of Washington, D.C.," Cardone stated on Fox Business' Morning With Maria. 

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