K3 Holdings Lawsuit, $2.2 Million Settlement Reached for Los Angeles Tenants—Who Qualifies and What You Need to Know

K3 Holdings—a Los Angeles real estate company—agreed to pay $2.2 million to settle claims that it targeted Latinx families living in rent-controlled apartments with harassment, threats, and discriminatory practices. The lawsuit, filed by the Southern California Housing Rights Center and 16 tenants, accused K3 of violating the Fair Housing Act by pushing families out to jack up rents. The settlement is final, and eligible tenants have already received payments as of January 2026.

What’s the K3 Holdings Lawsuit About?

Here’s what happened. Between 2019 and 2022, K3 Holdings bought up over 40 apartment buildings across Los Angeles—mostly in Highland Park, Koreatown, and East Hollywood. These buildings were covered by LA’s Rent Stabilization Ordinance, which caps rent increases to inflation rates.

But K3 didn’t want rent-controlled tenants paying $800 a month. They wanted market-rate tenants paying $2,500. So according to the lawsuit, K3 launched a campaign to force them out.

Tenants reported daily visits from “relocation specialists” pushing cash-for-keys deals. Spanish-speaking tenants were handed English-only contracts doubling their rent. Building managers who tenants trusted? Gone—replaced with off-site substitutes. Repairs stopped. Construction crews showed up simultaneously on multiple floors, creating unbearable noise. And some tenants say they were threatened with deportation if they didn’t leave.

K3 Holdings denies wrongdoing but settled to avoid a long court battle.

Who Filed the Lawsuit?

The Southern California Housing Rights Center filed the discrimination lawsuit in February 2022 in U.S. District Court for the Central District of California (Case No. 2:22-cv-00697). Sixteen tenants joined as plaintiffs, including Alma Angel, Rebeca Sanchez, and Margarita Ahumada—mostly Latinx families living in K3-owned buildings.

The lawsuit claimed K3 violated:

• Federal Fair Housing Act – prohibits housing discrimination based on race or national origin
• California Fair Employment and Housing Act – protects tenants from discriminatory practices
• Los Angeles Tenant Anti-Harassment Ordinance – bans landlord harassment tactics

What Did K3 Agree to Do?

Under the settlement terms finalized in 2025, K3 agreed to pay $2.2 million and implement major policy changes. Here’s what they’re required to do:

Provide tenant rights literature in English and Spanish explaining federal, state, and local fair housing laws. Every current and future tenant gets this.

Attend annual anti-discrimination training for all employees. The training covers fair housing laws and LA’s Rent Stabilization Ordinance.

Offer 10% of units to Section 8 tenants. This ensures affordable housing access.

Advertise in Spanish. All rental ads must appear on Spanish-language platforms like elclasificado.com and include “families with children welcome.”

Restrict construction hours to 8 AM–6 PM, Monday through Friday—stopping the noise harassment tactics tenants reported.

Hire neutral building inspectors to survey plaintiff apartments and complete needed repairs.

Ban a specific K3 employee from soliciting cash-for-keys deals. This employee was repeatedly named in tenant complaints.

What Happened with the Settlement Money?

The $2.2 million settlement included both damages for affected tenants and attorney fees. Individual payments varied based on each tenant’s experience and losses. The settlement was finalized in 2025, and payments have been distributed as of January 2026.

This isn’t a situation where you can still file a claim—the case is closed. But if you’re a current K3 tenant and you’re facing harassment, you have other options.

What If You’re Still Living in a K3 Building?

K3 Holdings operates over 40 properties in Los Angeles. If you’re a current tenant experiencing problems, here’s what you can do.

First, document everything. Save every email, letter, and text from K3. Take photos of repair issues. Record dates and times of harassment or construction noise. This creates a paper trail if you need to file a complaint.

Next, know your rights. If you’re in a rent-controlled building in LA (built before October 1, 1978), your landlord can only raise rent by the annual CPI increase. They can’t force you out through harassment. The LA Tenant Anti-Harassment Ordinance protects you from tactics like withholding repairs, refusing rent payments, or creating unbearable living conditions to push you out.

Contact the Housing Rights Center at 1-800-477-5977 for free counseling. They helped win this case and can advise you if you’re facing similar treatment. You can also reach out to the Los Angeles Tenants Union—they organized the K3 Tenant Council, which gave tenants across multiple buildings the power to fight back together.

Why This Case Matters

The K3 Holdings case isn’t just about one landlord. It’s about a pattern happening across Los Angeles—corporate landlords buying rent-controlled buildings and using every trick to force out longtime tenants so they can charge market rates.

The settlement sent a message: harassment, discrimination, and displacement won’t be tolerated. K3’s required policy changes create accountability not just for this company but as a model for what courts can demand when landlords cross the line.

For tenants living in other buildings facing similar tactics, this case proves that organizing works. The tenants who won this settlement didn’t do it alone—they formed tenant councils, connected with housing advocates, and stood their ground when K3 offered buyouts.

If you’re dealing with a landlord who’s pushing you out, threatening you, or ignoring repairs to make your apartment unlivable, you’re not powerless. Similar Gmail class action lawsuits have held companies accountable for violating consumer rights—and housing discrimination cases follow the same principle.

Common Questions About the K3 Holdings Case

Is the settlement still open for claims?

No. The case was settled in 2025 and payments have been distributed. The settlement is closed.

Can I sue K3 if I wasn’t part of the original lawsuit?

Yes. If you experienced harassment or discrimination in a K3 building, you can file your own claim. Consult a housing attorney to evaluate your case.

What if K3 is still harassing tenants?

The settlement requires K3 to change its practices. If they’re violating the agreement, contact the Housing Rights Center or an attorney—settlement violations can result in additional penalties.

Do I need to move out if K3 offers me money?

No. Cash-for-keys offers are optional. If you’re in a rent-controlled apartment, your rent can only increase by the annual inflation adjustment. Don’t let anyone pressure you into signing away your rights.

Last Updated: January 27, 2026
Disclaimer: This article is for informational purposes only and does not constitute legal advice.

If you’re a K3 Holdings tenant facing harassment or discrimination, contact the Housing Rights Center at 1-800-477-5977. Know your rights and don’t let anyone force you out.

Stay informed, stay protected. — AllAboutLawyer.com

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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