# Essex Property Trust Reaches $27.95 Million Settlement With Former California Tenants > Essex Property Trust agreed to a $27.95 million settlement with former California tenants over security deposit deductions. - Published: 2026-10-22T19:47:38+00:00 - Section: Legal & Disputes - Author: News Desk - URL: https://newsforagent.com/news/2026-10-22/essex-property-trust-tenant-settlement - Source: [FinancialContent Business Page](https://www.financialcontent.com/article/lawfirmnewswire-2026-10-22-nearly-28-million-settlement-reached-for-former-essex-tenants-across-california-regarding-security-deposit) ## Key takeaways - Essex Property Trust reached a proposed $27.95 million class action settlement with former California tenants over security deposit deductions. - The settlement includes a $19.25 million non-reversionary cash fund and $8.7 million in automatic debt forgiveness for move-out balances from September 27, 2018 through December 31, 2023. - The settlement is subject to preliminary court approval on November 13, 2026, in San Diego Superior Court. Essex Property Trust has agreed to a proposed class action settlement valued at approximately $27.95 million with former California tenants over security deposit deductions, according to the [FinancialContent Business Page](https://www.financialcontent.com/article/lawfirmnewswire-2026-10-22-nearly-28-million-settlement-reached-for-former-essex-tenants-across-california-regarding-security-deposit). The settlement resolves Norman, et al. V. Essex Property Trust, Inc., et al., San Diego Superior Court Case No. 37-2022-00038519-CU-NP-CTL, and will be presented for preliminary approval on November 13, 2026. ## What the Essex Settlement Includes The settlement provides a $19.25 million non-reversionary cash fund. Eligible former tenants who submit a claim will share in the fund in proportion to the qualifying charges deducted from their deposits. No money returns to Essex, and any unclaimed funds will support tenant legal-aid organizations in San Diego, Los Angeles, and the Bay Area. Essex will forgive $8.7 million in outstanding move-out turnover balances it claims from former California tenants from September 27, 2018 through December 31, 2023. No claim is required, and collection and credit reporting on those balances have already been paused. Essex will also ask the credit bureaus to correct or delete negative reporting tied to the forgiven balances. The company will pass any vendor discounts on turnover work through to tenants, provide annual and onboarding training on California deposit law, and update its move-out policies to provide vendor invoices, receipts, or bills, with compliance confirmed for three years. The lawsuit was filed in September 2022 by former tenants Alexis Norman and Nicolette Cochran and later joined by seven additional plaintiffs. It concerned move-out charges for cleaning, repairs, painting, and replacements, and the itemization and vendor documentation required by California Civil Code section 1950.5. Essex denies the allegations and any wrongdoing. "Judge Gandhi was simply outstanding," said Jeffrey L. Hogue of [Hogue + Belong](https://akta.pro/company-profiles/003cyo1/hogue-belong), Class Counsel for the plaintiffs. "He stayed with this case, earned the trust of everyone in the room, and found the common ground that made this agreement possible." ## Earlier Essex Property Trust Developments Essex Property Trust is expected to report Q3 2026 earnings after market close on October 27, with analysts projecting $1.47 EPS and $490.95 million revenue, according to MarketBeat. The company's Q3 guidance is 3.930-4.050 EPS, and its FY 2026 guidance is 16.030-16.250 EPS. Analysts updated their ratings and price targets on Essex Property Trust, with Evercore setting a $299 target and Scotiabank lowering its to $293, according to American Banking and Market News. The company announced a $2.59 quarterly dividend, payable October 15, with an ex-dividend date of September 30. ## Legal Disputes Across Real Estate Subcontractors for Inter Miami's Nu Stadium have filed over $20 million in liens and lawsuits against the stadium's owners, including Miami Freedom Park LLC and Inter Miami Stadium LLC, according to [Bisnow](https://www.bisnow.com/news/south-florida/commercial-real-estate/miami-freedom-park-lawsuits-inter-miami-lionel-messi). The claims include unpaid work for seats, fire protection, and flooring, with 38 liens and 16 liens filed against the respective entities. Three MLSs have rejected Compass International Holdings' demands to stop enforcing rules penalizing brokers for pre-submission marketing, according to [HousingWire](https://www.housingwire.com/articles/compass-mls-antitrust-pushback/). Compass threatened federal antitrust lawsuits, and CRMLS has already faced a suit. A Norwegian court ruled to confiscate five Russian real estate properties in Oslo, granting Naftogaz a 57 billion Norwegian kroner ($6.27 billion) claim, according to [TASS](https://tass.com/society/2204885). The properties include an apartment building in Frogner and four housing cooperatives. ## What Happens Next for Essex Tenants If the Court grants preliminary approval, a Court-appointed settlement administrator will send notice to class members by email and mail explaining how to submit a claim, opt out, or object. Former tenants do not need to take any action at this time. ## Companies in this story - Essex Property Trust · website: http://www.essexpropertytrust.com - [Hogue & Belong company profile](https://akta.pro/company-profiles/003cyo1/hogue-belong) · website: https://hoguebelonglaw.com --- News for Agent · https://newsforagent.com/llms.txt