Published: June 25, 2026
Overview
A class action lawsuit has been settled involving allegations that The Sobrato Organization, SIVI LLC, and Alliance Communities Inc. improperly withheld funds from tenants’ security deposits when they moved out of residential properties. The plaintiffs, represented by named plaintiff Adam D. MacDonald, claimed the defendants made unlawful deductions in violation of California Civil Code Section 1950.
5 and engaged in unfair business practices under California Business and Professions Code Section 17200. The settlement applies to all tenants who ended their leases and vacated residential units at the subject properties managed by the defendants. 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 settling parties addressed these concerns through supplemental filings submitted on August 29, 2022, and September 7, 2022, before the court adopted the settlement terms. Class members have several options regarding this settlement. They may take no action and await distribution of settlement funds. Alternatively, they may submit a claim if required by the settlement administrator.
Important Documents
Official Settlement Website
For full details or to file a claim, visit:
https://www.cptgroupcaseinfo.com/TheSobratoSettlement/