Published: June 25, 2026
Overview
A class action lawsuit against The Sobrato Organization, SIVI LLC, and Alliance Communities Inc. has reached a settlement following allegations that the companies improperly withheld funds from tenants’ security deposits. MacDonald on behalf of affected renters, centers on claims that the defendants made unlawful deductions from security deposits in violation of California Civil Code Section 1950. 5 and California Business and Professions Code Section 17200. The lawsuit also includes causes of action for fraud and declaratory relief.
The settlement applies to all tenants who ended their residential leases at properties managed by the defendants and vacated their units. On September 14, 2022, the court held a hearing to consider preliminary approval of the settlement agreement. The court had previously identified several issues requiring clarification, including the validity period for settlement checks, the calculation of the defendants’ potential liability, and the scope of the release language. The parties submitted supplemental declarations and amended settlement terms to address these concerns, with final submissions made on September 7, 2022. Class members have several options regarding this settlement.
They may take no action and remain part of the class, which would make them eligible to receive compensation if the settlement receives final approval. Alternatively, class members can opt out of the settlement entirely, meaning they would not be bound by its terms and could pursue their own legal claims. Class members also have the right to object to the settlement by submitting written objections to the court. Those who wish to receive payment under the settlement will need to submit a claim according to the procedures outlined in the settlement notice. Any settlement checks will remain valid for 120 days from their mailing date; after that period, uncashed checks will become void and those funds will be redistributed among other class members.
Important Documents
Official Settlement Website
For full details or to file a claim, visit:
https://www.cptgroupcaseinfo.com/TheSobratoSettlement/