Judge Certifies Class Against Coldwell in $55M Scam

Law360, Los Angeles (March 26, 2012, 4:21 PM EDT) -- A California federal judge Monday tentatively certified a class of investors who claim Coldwell Banker Real Estate Corp. let a disreputable real estate investment company leverage Coldwell’s reputation to sell $55 million in fake securities, saying declarations showed sales representatives repeatedly used Coldwell’s name.

U.S. District Judge Andrew J. Guilford tentatively rejected Coldwell’s argument that differences in over-the-phone sales pitches that about 1,600 investors heard before dumping money into the alleged Ponzi scheme meant each investor’s reliance on the purported misrepresentations needed to be evaluated individually...
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