eXp Realty Faces Decline Amidst Lawsuits

eXp Realty, founded by Glenn Sanford, is facing unprecedented challenges with a 5% decline in its agent count in 2024, marking its first ever reduction. This downturn coincides with serious allegations in two lawsuits claiming the company operates as a pyramid scheme and that Sanford was aware of peer-on-peer sexual assaults but failed to act.

The lawsuits describe eXp's revenue-sharing structure as a multi-level marketing pyramid, incentivizing agent recruitment. eXp denies these claims, stating it is a traditional brokerage. Sanford, who stepped down as CEO of eXp Realty in early 2026, remains chairman of the parent company, eXp World Holdings, with new CEO Leo Pareja at the helm.

Allegations detail incidents of alleged sexual assault at company events, with lawsuits claiming eXp ignored these issues to protect revenue. The company states it has zero tolerance for misconduct and investigates all claims, but maintains the lawsuits against it and its leadership lack merit. Sanford himself was named in one suit, though he denies the allegations.

While eXp asserts its revenue share plan is a differentiator and improved agent productivity offsets headcount loss, a short seller believes the model is unsustainable without constant recruitment. The company states the agent reduction targeted less productive agents. Sanford, who no longer sells real estate, receives a cash bonus equivalent to his former revenue share.