NOTICE CONCERNING STATUS OF LITIGATION

U.S. District Court, Central District of California (Los Angeles) Estakhrian et al v. Mark Obenstine, Case No. CV-11-3480 FMO-CW

If you are an individual who deposited funds to purchase a unit in the Cosmopolitan Resort and Casino Las Vegas, and you participated in and received a partial refund of your deposit through the settlement of the prior class action, Daniel Watt, et al. v. Nevada Property 1, LLC, et al., Nevada Dist. Ct. Case No. A582541, this status update is directed to you.

MEMO TO CLASS

January 15, 2020

Dear Class Members,

                Mr. Obenstine has communicated with numerous class members stating that he intends to sue them for violating agreements in the Cosmopolitan case and is seeking money from class members to settle his new claims.  We have spoken to quite a few class members but at present do not know if everyone has been contacted or just a select number.

                We view Mr. Obenstine’s contacts as entirely improper and in violation of the Court’s prior orders, clearly wrong on the merits as well as untimely.  As you know, the Court entered a $12M Judgment against Mr. Obenstine in March 2019, which he has appealed.

                On Tuesday January 7, 2020 we filed with Judge Olguin a motion and supporting materials asking for a court order requiring Mr. Obenstine to show why he should not be held in contempt of court for his actions against class members. The Court has scheduled a hearing on our motion for February 6, 2020. Copies of the motion papers and order can be reviewed at on the Cosmopolitan website  www.Cosmo2017classaction.com , and on Pacer, the Court’s website. 

We are sorry if Mr. Obenstine’s communications have caused you anxiety or concern.  We believe these contacts, and Mr. Obenstine’s efforts to get class members to pay him money, are outrageous and improper.  Our advice to class members is not to respond to any contacts from Mr. Obenstine but to keep a record of any communications from Mr. Obenstine for possible use in the future. 

We will let you know when we receive Judge Olguin’s ruling on the pending motion.

Best wishes for the New Year.  Class Counsel

CASE UPDATE

On March 26, 2019 the Court issued a great decision following the bench trial that took place in December, 2017.  The court made very detailed factual and legal findings and ordered full disgorgement of the $12M fee Mr. Obenstine received from the prior litigation. You can read the Findings of Fact and Conclusions and the Judgement in the Court Document section.

Following the Judgment there have been other favorable rulings.  The Court approved costs and expenses of $30,704.74 and fees for Class Counsel of $3.6M, representing 30% of the $12M Judgment.  The Court also approved a settlement between Class and defense counsel relating to sanctions requests pending against defense counsel arising from claimed discovery and litigation abuses.

Most importantly, Plaintiffs requested, and the Court entered, a Revised Judgment that has the effect of maintaining the injunction against Mr. Obenstine preventing him from transferring or encumbering his Oregon property in order for it to be available as an asset for collection. 

As a result, the case has been concluded at the District Court level.  Mr. Obenstine has noted an appeal to the Court of Appeals and Plaintiffs have noted an appeal challenging the dismissal of the Nevada lawyers early in the case on jurisdictional grounds.

The Court of Appeals has initiated a mediation process and the parties are currently participating in mediation.  If not resolved by mediation, opening briefs will be due in early October.  Collection efforts on the Judgment can begin approximately 30 days after the Revised Judgment unless Mr. Obenstine posts a bond, which is highly unlikely.  Until those issues have been resolved and Obenstine’s remaining assets located and made available there will not be any funds to disburse.  Collection may prove difficult as Mr. Obenstine claims to have limited assets at this time.

There is no need to submit any forms or contact counsel at this time. We will update this website from time to time as more information becomes available.

Please visit www.Cosmo2017classaction.com for additional information and updates.

BACKGROUND INFORMATION

All individuals who were class members in, i.e., did not opt out of, Daniel Watt, et al. v. Nevada Property 1, LLC, et al., Nevada District Court, Case No. A582541, excluding Sanjay Varma.

All class members who entered into a retainer agreement with Defendant Mark Obenstine regarding the subject matter of Daniel Watt, et al. v. Nevada Property 1, LLC, et al., Nevada District Court, Case No. A582541.

FURTHER INFORMATION

Class Counsel: