Judge: You Screwed Up Grant Cardone! Class Action APPROVED! | Business Is War | Ep. 004

Welcome to Business as War, my show. This is episode number four, The News in Seven Minutes. We're breaking down the federal appeals case, breathing new life into a class action lawsuit against Grant Cardone. And after a brutal 12 year sentence for Celsius Network founder, Alex Mashinsky, one sold returns he allegedly didn't believe, the other sold crypto dreams while bleeding investor billion. Now let's get into it. From Grant Cardone, from 10X to the federal court. In June, 2025, the U.S. Court of Appeals reverses a dismissal and allows a class action lawsuit over securities fraud case against Grant Cardone to now move forward. Why? Because Cardone allegedly made social statements like this. This is absolutely possible. In 10 years, 15% return on your investment. That's what we expect to get. Well, the SEC told him to remove those projections from his offering, and he didn't disclose that to the investor. Now the court says the case must now proceed under section 12 of the Securities Act, which is pretty serious. Now, Cardone says it was opinion, not fact, and claims everything is public. They could have seen this letter publicly, but the Ninth Circuit court says, I'm not buying it. Why it matters? Because it was left out? Because he actually believed what he was saying. Here's a lesson. Social media isn't just content. It's court admissible. Be careful what you say. Also, emissions are just as lethal as lies. Investor trust isn't built on stages. It's built in the fine print. Story number two, Alex Mashinsky, crypto's poster boy becomes inmate number 47295 in May, 2025. Celsius founder, Alex Mashinsky is sentenced for 12 years in prison for lying to investors and misusing billions in customer funds. He promised transparency, high returns and decentralized banking, but behind the scenes, massive fraud, personal enrichment and collapse, same story, different day, he hid the truth, misrepresented Celsius finances cashed out while his other users lost everything. His defense, it was just a startup mistake. The court responded with, you're going to prison. Now here's the lesson. Hype isn't harmless. It's a liability. Real founders build truth while fakers bill cases. If your vision is bigger than your integrity, your collapse is soon to happen. Two stories, two massive platforms, two men who believe that their brand was bulletproof until it wasn't. I've been saying this for years. Business is war. Credibility is your only currency. When that runs out, the market collects in blood or bankruptcy, or even in some cases jail. So if you want to know how I've survived over 70 plus brands and companies over a thousand deals and still sleep at night, read chapter five of my book, bestselling book, business is war, credibility is the currency. Now here's my opinion on this. On story number two, I'm a little concerned. There's been a lot of people who've done a lot of shady things in crypto and SPF from FTX end up going to jail. He's seeking a pardon. A lot of people who have committed these kinds of scam have been pardoned. And how many people do we know went to jail for doing rug pulls on crypto coins or meme coins? How many of them did NFTs pump and dump and nothing happened to them? And so I'm concerned that this may be another situation where it's okay to commit crimes, which is not, it's okay to mislead people, which is not. And on Cardone side, what I did not say in the intro is that the unaccredited investors, which first of all, you should never do deals with any accredited investors. Just the liability is just too big. But the issue here stems from this person sued and was a 10,000 hour case. And Cardone did offer to pay back the guy, 10,000 to make it go away. And the lawyers obviously must've convinced them or he felt that he wanted his day in court, but when you have something as 10,000, they should be just easy to just get back to 10,000 and it's going to basically cost them millions and millions of dollars plus time, plus brand reputation over a 10,000. But there are a lot of things that are happening in Cardone's life that people are saying, such as allegations of front running over inflating assets, non-disclosure. And every time he has been almost close to a deposition, which we will talk tomorrow, show about lawsuits and the roles that lawsuits play either as an intimidation factor or as a weapon to, to win and whether or not it should be used or not. Where's the system broken because there's more and more cases on there as well. And so I don't think a class action lawsuit over 10,000 should be warranted, but there's so many other things that are swirling around that this will be the first time. Will he be deposed? And if you take a look at Cardone's history, he doesn't settle, he doubles down. And now that you have a very big, reputable class action lawsuit, it should be a massive, massive, massive, massive lawsuit. But in the end, it's the investors that are going to lose out. The attorneys will make their fees as they should, but in the end, those who are invested in these types of funds should be very careful and should seek legal counsel to make sure that their positions are protected. In the end, nobody wins in lawsuits. And, um, I never thought I'd say this is that a $10,000 class action lawsuit that could cost a million kind of sucks, but the law doesn't seem to protect small investors or investors on this. But in the other end, if he had not said publicly 15% return, 150,000 over 10 years, 150% return, we wouldn't be in this situation. So his actions led him to this situation. I believe he had said those statements. He probably wouldn't have a lawsuit, but lawsuits are not fun. And tomorrow we're going to explore some of these cases right now that are happening that are destroying businesses. In some cases, gaining businesses and how you can use the legal system in your favor, because it's a big part of the news. And so tomorrow things like Gary Breka, former CEO of T-Mobile, John ledger. So this isn't a, an episode you cannot afford to miss. And if you like this format, you'll like this show. I'd like to have some topic. Please subscribe. Please comment. I'd love to hear your comment. Also, we have now posted these on Spotify and Apple. You can now see them as well. It takes two seconds and it helps the algorithm so I can give you more amazing episode. What did you think of the episodes? There's always two sides to the truth. And then there is your opinion. Click below, make a comment and also make sure you pick up my book. Businesses war number one, bestselling book. And you learn nothing from success at everything from failure. So hopefully you will learn from these failures and it's never really worth crossing the line. Because maybe you're going to get caught. Maybe you won't, but if you do, it could be devastating on your business. We'll see on tomorrow's show. Want to bring me your deals? Need capital? Want to partner on M&A's or get free branding or advice? Or are you curious what I'm building in AI? The links are in the description. Let's win.