Sequoia Equities $3.1 Million Security Deposit Settlement, Who Qualifies, How Much Tenants Could Receive and the December 3 Claim Deadline

Sequoia Equities has agreed to a $3.1 million class action settlement over claims that the California apartment manager improperly kept tenants’ security deposits, charged excessive move-out fees and sent disputed balances to collection agencies. The case is Ross v. Sequoia Equities, Inc., No. C23-02401, in the Superior Court of California, County of Contra Costa. It covers about 17,000 former tenants at roughly 67 California apartment communities.

Claim or automatic? Read this first:

• Security Deposit Class: if more than $125 was deducted from your deposit for move-out charges, you generally must file a claim by December 3, 2026.
• Defamation Class: if your balance after the deposit was applied was sent to a collection agency, you receive your payment and debt relief automatically, with no claim form.

Leases must have ended between September 25, 2019 and September 16, 2026. Sequoia denies wrongdoing. The court granted preliminary approval on September 16, 2026, and final approval is pending, with a hearing on January 13, 2027.

Official website: RossvSequoia.com | Claim form: rossvsequoia.com/claim-form | Administrator: Xpand Legal Consulting, 888-557-2773

Sequoia Equities Settlement: Quick Facts

Detail	Information
Settlement value	About $3.1 million: roughly $1.8 million cash and $1.3 million in debt relief
Case	Ross v. Sequoia Equities, Inc., No. C23-02401
Court	Contra Costa County Superior Court, California
Lead plaintiffs	Kiara Ross, Felicia Costa and Mark Piepowski
Class counsel	Hogue & Belong and Robinson, Markevitch & Parker
Class size	About 17,000 former tenants at about 67 California communities
Class period	Leases ended September 25, 2019 to September 16, 2026
Claim, opt-out and objection deadline	December 3, 2026
Final approval hearing	January 13, 2027, 9:00 a.m., Department 16
Administrator	Xpand Legal Consulting (888-557-2773; [email protected])
Status	Preliminary approval granted September 16, 2026; final approval pending

Who Qualifies?

Security Deposit Class (claim required)

You may qualify if you rented at a covered Sequoia-managed California property, your lease ended in the class period, and more than $125 was deducted from your security deposit for condition-based move-out charges, such as cleaning, painting, carpet replacement or repairs. The $125 figure is a settlement threshold. It is not a California rule saying deductions under $125 are always lawful.

Defamation Class (automatic)

You may qualify if your lease ended in the class period, your deposit was applied to alleged move-out charges, and a remaining balance was then referred to a third-party collection agency. The class is called the “Defamation Class” because the lawsuit alleged that disputed debts were communicated to outside collectors.

Can you be in both?

Possibly, if your history fits both definitions. That does not guarantee two separate payments, since the administrator applies the allocation rules to each person’s records.

Which apartments are covered?

About 67 communities across California are covered. Examples mentioned in settlement summaries include Alize at Aliso Viejo, Cross Pointe, Sterling Heights and Iron Point at Prairie Oaks. The full list is on the settlement website. Do not assume a building is covered because of a similar name or because it is near a Sequoia property. The managing company, property and lease end date all matter.

How Much Will Tenants Receive?

No fixed amount has been set. Class counsel describes about $1.8 million in cash and about $1.3 million in debt relief.

After deductions, the net cash fund is allocated roughly 90% to the Security Deposit Class and 10% to the Defamation Class. The deductions include:

• Administration costs of up to $50,000
• Service awards of up to $30,000 in total for the class representatives
• Attorneys’ fees of up to one-third of the total settlement amount, plus costs

Security Deposit Class payments are pro rata, based on the size of the amount withheld and the number of valid claims. For example, if two eligible claimants had $300 and $900 withheld, the second claimant’s share would carry three times the weight of the first. That is not the same as getting $300 or $900 back. Defamation Class payments are calculated from the administrator’s records and paid automatically.

This is not a guaranteed $3.1 million cash payout to tenants. Individual payments are not guaranteed at any level, and the settlement does not promise a full refund of each deduction.

Debt Relief: What Is and Is Not Forgiven

According to class counsel, Sequoia will stop pursuing about $1.3 million in specified former-tenant balances tied to the challenged move-out charges. For those covered debts, Sequoia will not collect, sell or assign them, or report them to collection or credit reporting agencies.

Alleged balance	Covered by debt relief?
Covered move-out charges sent to collections	Potentially yes
Cleaning, painting or repair deductions within the settlement’s scope	Potentially yes
Unpaid monthly rent	Generally excluded
Unpaid utilities	Generally excluded
Unrelated debts	Not covered

If a collection notice mixes move-out fees with unpaid rent, ask the administrator which amounts are covered. The settlement restricts reporting of covered debts, but it is not described as a guaranteed deletion of every negative item on your credit report. Review your reports and dispute any entry tied to a covered balance. For help with collection demands, see What Are the Three Things Debt Collectors Need to Prove? Your Legal Rights and Documentation Requirements.

How to File a Claim (Security Deposit Class)

1. Go to rossvsequoia.com/claim-form. This is the administrator’s page, not a third-party service.
2. Enter the Xpand ID and PIN from your settlement notice.
3. Review the account information shown. The administrator uses Sequoia’s records to confirm deductions, and published instructions indicate receipts are generally not required for a standard claim. Keep your lease, deposit statement and move-out letters anyway.
4. Submit by December 3, 2026 and save your confirmation. Visiting the page is not filing.
5. Choose your payment method at rossvsequoia.com/payment-election. Without an election, payment is generally by paper check to the address on file.

By mail: use the printable form from the website and send it to Ross, et al. v. Sequoia Equities Inc., et al. Settlement Administrator, c/o Xpand Legal Consulting, P.O. Box 51570, Irvine, CA 92619. The administrator also lists fax 949-996-7556. Confirm delivery rules with the administrator, and note that an email or phone call alone does not count as a claim.

Moved or lost your notice? Update your address at rossvsequoia.com/change-of-address (deadline for address updates and payment elections is December 3, 2026). If you have no notice, gather your property name, lease end date, deposit statement and any collection letters, and call 888-557-2773 to ask whether you are in the class records. Do not file multiple claims for the same rental account.

Related article: Can the DOJ Prosecute Members of Congress for Investigating the President? The White House Counsel’s Letter and the Constitutional Fight Behind It

Deadlines

Event	Date
Claim form (Security Deposit Class)	December 3, 2026
Opt-out request	December 3, 2026
Objection	December 3, 2026
Payment election and address update	December 3, 2026
Final approval hearing	January 13, 2027, 9:00 a.m., Dept. 16
Payments	After final approval and any appeals

Your Options

• Claim: required for Security Deposit Class cash.
• Do nothing: Defamation Class members still get automatic benefits. Security Deposit Class members get nothing. In either case you are bound by the release if the settlement becomes final.
• Opt out: you receive no benefits but keep any right to sue on your own, subject to deadlines. Follow the notice’s instructions exactly.
• Object: tell the court why you disagree and remain in the class. You can still file a claim.

Taking part or not taking part will not affect any current tenancy, and California law prohibits retaliation against tenants (Cal. Civ. Code § 1942.5).

If you are thinking of opting out, check your deadlines first. Claims over deposits and collections can be time-limited (see below), and a small claims case may suit smaller amounts. The small claims limit for individuals is currently $12,500 under Cal. Code Civ. Proc. § 116.221. Verify the current limit.

Why Did Tenants Sue?

The lawsuit began in September 2023. The plaintiffs alleged that Sequoia:

• Kept deposit money for cleaning, painting, carpet and repairs that were excessive, unsupported or really ordinary wear and tear
• Failed to give proper itemized statements, with class counsel pointing to a property-management software change that allegedly sent statements to wrong addresses
• Referred disputed balances to collectors. Class counsel describes one former tenant contacted nearly three years after moving out and told to pay over $30,000, who said they never got a proper move-out statement

These are allegations. Sequoia denies them and settled to avoid the cost and risk of litigation. A settlement is not a finding that every charge was unlawful.

California and Federal Laws That Apply

Security deposits: Civil Code § 1950.5

• Permitted uses: a deposit may cover unpaid rent, cleaning needed to return the unit to its move-in level of cleanliness, and repair of damage beyond ordinary wear and tear. It may not be used for ordinary wear and tear.
• Timing and itemization: a landlord generally must return the balance and send an itemized statement within 21 calendar days after getting possession, with supporting documents or receipts when required.
• Photographs: California’s AB 2801 added photo requirements for deposit deductions. The landlord must photograph the unit before and after cleaning or repairs for move-outs on or after April 1, 2025, and move-in photos apply to tenancies that began on or after July 1, 2025. These rules should not be applied retroactively to 2019 to 2024 tenancies. Subdivision numbering in § 1950.5 changed in recent amendments, so check the current text before citing a specific subdivision.
• Bad-faith retention: a court may award statutory damages of up to twice the deposit, on top of actual damages. That is not automatic, and this settlement does not promise it.
• Deposit cap: for most tenancies, deposits are capped at one month’s rent (AB 12, effective July 1, 2024). That cap is background and is not at issue in this settlement.

Unfair competition: Bus. & Prof. Code § 17200

Prohibits unlawful, unfair or fraudulent practices. A violation of § 1950.5 can support a UCL claim. Private remedies are limited to restitution and injunctive relief (§ 17203), and the limitations period is four years (§ 17208).

Defamation: Civil Code §§ 44 to 47

Written false statements are libel (§ 45). The statute of limitations for defamation is one year (Code Civ. Proc. § 340(c)). That short period is one reason the settlement’s automatic benefits for the Defamation Class matter, and why anyone who opts out should speak to a lawyer quickly. Civil Code § 47 provides certain privileges that defendants often raise.

Debt collection and credit reporting

• Rosenthal Fair Debt Collection Practices Act, Cal. Civ. Code § 1788 et seq.: covers both collectors and, unlike the federal law, creditors collecting their own debts.
• Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq.: covers third-party collectors. Under § 1692g, a collector must send a validation notice, and you generally have 30 days to dispute the debt in writing.
• Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq.: lets you dispute inaccurate information with credit bureaus (§ 1681i) and imposes duties on those who report data (§ 1681s-2). Collection accounts can generally remain on a report for seven years (§ 1681c).
• California Consumer Credit Reporting Agencies Act, Civ. Code § 1785.1 et seq.: the state counterpart.
• Fair Debt Buying Practices Act, Civ. Code § 1788.50 et seq.: applies when a debt is sold to a debt buyer.

Class action rules

• Cal. Code Civ. Proc. § 382 authorizes class actions in California courts.
• California Rules of Court, rules 3.766 and 3.769 govern class notice and court approval of a class settlement, including a fairness hearing.

Other time limits can apply to individual claims. For example, a written-contract claim generally has four years (Code Civ. Proc. § 337). Do not assume you have unlimited time if you opt out.

What Happens at the Final Approval Hearing?

On January 13, 2027 at 9:00 a.m. in Department 16 of the Contra Costa County Superior Court, the judge will decide whether the settlement is fair, reasonable and adequate, and will consider fees, expenses, service awards and any objections. The court could approve it, ask for changes or continue the hearing. Published information suggests payments may go out within about 30 days after the settlement becomes final, but no date is guaranteed. Appeals could cause delays. Check the website for updates.

Is This the Sequoia Data Breach Settlement?

No. This case is separate from In re Sequoia Benefits and Insurance Data Breach Litigation, which involves Sequoia Benefits and Insurance Services and Sequoia One PEO, a 2022 cyber incident, and different deadlines. Do not use that settlement’s website to file a security deposit claim. The correct site is RossvSequoia.com.

Compare Other Landlord Settlements

Each settlement has its own class period, benefits and deadlines. See Concord Management $1.85 Million Security Deposit Settlement, Former Florida Tenants Get Automatic Payments and Debt Relief, where payments are generally automatic, and Equity Residential $1,000,000 Mill Creek Apartments Settlement, Who Qualifies, How Much and What to Do, which involves a local rent-review ordinance rather than security deposits.

What Tenants Should Do Now

1. Find your lease end date, property name and deposit statement.
2. If more than $125 was deducted, file a claim by December 3, 2026.
3. If your balance went to collections, check your credit reports and confirm your status with the administrator.
4. Update your address and payment choice before December 3.
5. Keep leases, move-out reports, photos, itemized statements and collection letters. They help in any dispute and in future tenancies.
6. Ask a licensed California attorney or a local tenant organization before opting out.

Frequently Asked Questions About the Sequoia Equities Settlement

Is the Sequoia Equities $3.1 million settlement legitimate?

Yes. It resolves Ross v. Sequoia Equities, Inc., a California class action with preliminary court approval. Final approval is pending.

Who qualifies?

Former tenants of covered California properties whose leases ended between September 25, 2019 and September 16, 2026, and who meet the Security Deposit Class or Defamation Class definition.

Do I need to file a claim?

Security Deposit Class members generally do. Defamation Class members receive automatic benefits.

What if only $100 was deducted from my deposit?

That alone does not meet the reported Security Deposit Class threshold of more than $125. You might qualify under the Defamation Class if your account was sent to collections.

How much will I get?

No fixed or average amount has been verified. It depends on the net fund, your deduction and the number of valid claims.

Will I get my whole deposit back?

Not necessarily. Payments are proportional.

Does the settlement forgive unpaid rent?

No. Reported debt relief covers specified move-out-related balances and excludes rent and utilities.

Do I need receipts?

Published instructions indicate a standard claim uses your notice ID and PIN and generally needs no additional receipts.

I lost my notice. What do I do?

Call Xpand Legal Consulting at 888-557-2773 to verify your class status and get your filing information.

What is the claim deadline?

December 3, 2026, which is also the opt-out, objection, payment-election and address-update deadline.

When will checks arrive?

No date is confirmed. Payment follows final approval (hearing January 13, 2027) and any appeals.

Can I choose electronic payment?

Yes, through the payment-election page on the settlement website.

Has Sequoia Equities admitted wrongdoing?

No. Sequoia denies the allegations.

Will participating affect my current lease?

No. California law prohibits retaliation against tenants.

Sources and Legal References

1. Ross v. Sequoia Equities, official settlement website
2. Official claim form
3. Payment election
4. Change of address
5. Official settlement document download
6. Important documents, including the Class Notice
7. Hogue + Belong, class counsel announcement
8. Contra Costa Superior Court, January 22, 2026 published record (PDF)
9. Cal. Civ. Code § 1950.5
10. Cal. Bus. & Prof. Code § 17200
11. Cal. Civ. Code §§ 44 to 47, 1785.1 et seq., 1788 et seq., 1788.50 et seq., 1942.5; Cal. Code Civ. Proc. §§ 116.221, 337, 340(c), 382; Cal. Rules of Court 3.766 and 3.769; 15 U.S.C. §§ 1681 et seq. and 1692 et seq.

Disclaimer: AllAboutLawyer.com provides general U.S. legal information, not legal advice, and Israr Ahmad is not an attorney. No attorney-client relationship is created by reading this article. The allegations against Sequoia Equities have not been decided by a final judgment. Eligibility, payments and your rights are controlled by the official settlement agreement, court orders and the administrator’s determination. For your own situation, consult a licensed California attorney.