Delaware Court Lets Shareholder Suit Accusing eXp Founder Glenn Sanford and Directors of Ignoring Sexual Misconduct Proceed

The Delaware Court of Chancery has refused to dismiss a shareholder derivative lawsuit accusing eXp World Holdings founder, chairman and Chief Executive Glenn Sanford and several current and former directors of failing to act on reports that top eXp agents drugged and sexually assaulted other agents at company-sponsored events.

In an opinion dated January 16, 2026, Chancellor Kathaleen McCormick denied the defendants' motion to dismiss as to Sanford and the director defendants in Los Angeles City Employees' Retirement System v. Glenn Sanford, et al. The court granted the motion on one claim, rejecting what it called a novel theory that a control group including Sanford breached oversight duties, saying extending such duties would require making new law. The defendants named in the suit include Sanford, Randall Miles, Dan Cahir, Jason Gesing, Eugene Frederick and James Bramble.

The complaint alleges that eXp terminated former agent Michael Bjorkman in 2020 but continued paying him downline revenue, that executives received an October 2020 memorandum detailing assaults by Bjorkman and David Golden, and that an eXp director who turned whistleblower raised the issue at two board meetings. It also alleges that Sanford had a financial incentive to retain both agents because they were in his downline. The defendants are not accused of committing the assaults. The court found that the complaint adequately alleged that Sanford breached his duty of loyalty and that the directors failed to respond in good faith to red flags.