Sequoia Equities $3.1 Million Security Deposit Settlement

Tenants of a California apartment Sequoia Equities Inc. managed whose lease ended between Sept. 25, 2019, and Sept. 16, 2026, and whose security deposit the company retained for move-out charges of more than $125 or whose account the company sent to a collection agency for an alleged outstanding balance after it applied their security deposit may be eligible to claim a cash payment or debt relief from a class action settlement.

Sequoia Equities agreed to pay $3.1 million to settle a class action lawsuit for allegedly unlawfully retaining security deposits and improperly reporting outstanding balances to collection agencies in violation of California law.

Who can file a claim?

Class members are tenants of a California rental apartment community Sequoia Equities managed whose lease ended between Sept. 25, 2019, and Sept. 16, 2026. The settlement website includes a full list of Sequoia Equities-managed apartment communities.

There are two main groups of class members:

• Security deposit class members: Tenants whose leases ended and from whose security deposit Sequoia Equities deducted more than $125 in move-out charges
• Defamation class members: Tenants whose accounts Sequoia Equities referred to a third-party collection agency for an alleged outstanding balance after the company applied their security deposit

How much can class members get?

The settlement divides the $3.1 million fund into approximately $1.8 million for cash payments and $1.3 million for debt relief.

The specific amount a class member may receive depends on their status and the number of valid claims submitted. The settlement includes two categories of class members:

• Security deposit class members: Eligible claimants will receive a proportional share of 90% of the net settlement fund based on the amount of their security deposit Sequoia Equities retained.
• Defamation class members: Eligible claimants will automatically receive a proportional share of 10% of the net settlement fund. In addition, Sequoia will cease all collection efforts for debts related to security deposit deductions, excluding unpaid rent and utilities.

If the number of valid claims changes, the percentage each class member receives may also change. The settlement administrator will determine the final amount after processing all claims and deducting administration costs, service awards, and attorney fees and costs from the settlement fund.

How to claim a settlement payment

Security deposit class members must submit an online claim form or print and complete the claim form at the same link and mail, email or fax it to the settlement administrator.

Settlement administrator's mailing address: Ross, et al. v. Sequoia Equities Inc., et al., Settlement Administrator, c/o Xpand Legal Consulting, P.O. Box 51570, Irvine, CA 92619

Settlement administrator's email address: classaction@xpandlegal.com

Settlement administrator's fax number: 949-996-7556

Defamation class members do not need to take any action; the settlement administrator will automatically process these payments.

The deadline to file a claim is Dec. 3, 2026.

Is proof or documentation required to submit a claim?

• Security deposit class members must supply the Xpand ID and PIN they received in their settlement notice to submit a claim, payment election or change of address form online. No additional proof is required.
• Defamation class members: No action or proof is required. The settlement administrator will automatically process these payments. Claimants who wish to submit a payment election or who need to update their address can do so online using the Xpand ID and PIN they received in their settlement notice.

Payout options

• Electronic payment for class members who use the online payment election form.
• If a class member does not select a payment option using the online payment election form, the settlement administrator will issue payment by check mailed to the address on file, provided on the claim or provided on the settlement website.

$3.1 million settlement fund breakdown

The $3,100,000 settlement fund includes:

• Settlement administration costs: Up to $50,000
• Attorneys’ fees: Up to $1,033,333
• Attorneys’ expenses: Up to $65,000
• Service awards to class representatives: $10,000 each ($30,000 total)
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline to file a claim or update address or payment selection: Dec. 3, 2026
• Deadline to opt out: Dec. 3, 2026
• Final approval hearing: Jan. 13, 2027

When is the Sequoia Equities payout date?

The settlement administrator will issue payments to eligible class members within approximately 30 days after the court resolves any appeals and grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged Sequoia Equities unlawfully retained security deposits in excess of $125 for cleaning, repairs or replacements, and engaged in unfair business practices by reporting outstanding balances to collection agencies.

The company denied all allegations but agreed to settle to avoid the expense, inconvenience and risks of further litigation and trial.

Sources

1. Claim form
2. Class notice
3. Payment election form
4. Change of address form
5. Settlement website FAQ page