Mehri & Skalet, along with California co-counsel, filed a class action lawsuit in 2011 on behalf of more than one thousand consumers who put down deposits on condominium units in the Cosmopolitan Las Vegas and were represented in their efforts to recover their deposits by a group of attorneys including Mark Obenstine. 

The complaint alleges that the attorneys used “runners” and “cappers” to recruit clients in violation of California law, misled clients about the value of a proposed settlement, and withheld key information from their clients, such as the fact that one member of the legal team was a partner in a firm that represented the Cosmopolitan’s owner, Deutsche Bank, and thus had a conflict of interest. The complaint seeks damages for malpractice, breach of contract and fraud in the amount of the difference between the amount the former clients settled for and the full value of their deposits at the Cosmopolitan, as well as a disgorgement of the former lawyers’ attorneys fees. 

The case is currently pending in federal court in the Central District of California, in Los Angeles, and is in the discovery phase.