Landa Lawsuit Update 2026: What Happened to the Landa App

Updated October 15, 2026 — where the Landa lawsuit stands today. There is no single Landa lawsuit, and no case we can find has ended Landa's problems. (1) The New York lender case (Index No. 659157/2024) shows no reported ruling on the merits in Landa's filings. (2) In the federal foreclosure case over a Brooklyn property (No. 1:25-cv-01939), the court denied Landa's emergency requests in November 2025, a magistrate judge recommended denying a second one on February 10, 2026, and the public docket then shows settlement-conference entries in February 2026, a status report on March 27, an order on July 23, and, on September 23, 2026, an entry titled “Notice of Acceptance with Offer of Judgment.” We could not retrieve the text of those later entries, so we do not know who made or accepted the offer or on what terms. (3) EDGAR shows no new Landa filing after Landa App 3 LLC's Form 1-U of September 16, 2026 (checked October 15, 2026), and the landa.app footer still says deposits and secondary trading are paused.

Updated October 11, 2026 — the app is still frozen, another Landa property was foreclosed on September 1, and the federal court has so far turned down Landa's emergency requests. Platform: the footer of landa.app still reads “At this time, there are no active offerings on the platform. Deposits and secondary trading are temporarily paused” (checked October 11, 2026), so you still cannot sell shares in the app. What has changed is the pitch: the page title is now “Landa | Investment management and property management” and the copy promises “one place to run the properties we manage.” The newest offering-circular supplement (Form 253G2) from Landa App LLC, Landa App 2 LLC and Landa App 3 LLC is dated September 17, 2024. Newest filing: Landa App 3 LLC's Form 1-U of September 16, 2026 reports that the series holding 6696 Mableton Parkway SE in Mableton, Georgia lost the property at a foreclosure sale on September 1, after it could not repay a bridge loan at maturity, and that its units will be cancelled. Landa App 2 LLC filed on July 10 and Landa App LLC on July 23, 2026, reporting short-term affiliate loans at 10% that were made “in response to imminent payment demands by senior lenders.” Reports: none of the three issuers has filed an annual (1-K) or semiannual (1-SA) report since the one Landa App LLC filed on January 3, 2025 for the six months to June 30, 2024 (EDGAR filing lists, October 11, 2026). Courts: in the New York lender case (Index No. 659157/2024) Landa disputes the default claim; in the federal foreclosure case over a Brooklyn property (No. 1:25-cv-01939) the court denied the defendants' first request for a temporary restraining order on November 16, 2025, and on February 10, 2026 a magistrate judge recommended denying a second one; later docket entries are summarized in the October 15 box above. The new section below sets out each case. Corrections: earlier versions named the court-appointed manager and the judge and said the New York order covered 119 properties. We no longer name individuals from court records, and the December 19, 2024 filing lists 88 “Borrower Series”; the 119 count is Bisnow's.

What Landa Was Supposed to Be

The pitch was, genuinely, one of the best in the entire fractional-real-estate space. Open the app, browse a list of real single-family homes in places like Stone Mountain, Covington, Jonesboro, and Decatur, Georgia, and buy a share of one for about $5. Collect monthly dividends from the rent. Sell your shares to other users whenever you wanted on Landa's in-app secondary market. No accreditation, no $100 minimum, no five-year lockup. It made Arrived Homes' $100 entry look expensive and Ark7's $20 minimum look conservative.

Mechanically, each property was its own Delaware series LLC ("Landa App LLC - 540 Cowan Road Covington GA LLC," and hundreds more — you can read the literal list in their SEC filings). When you bought a "share," you bought a membership interest in that one series, which held title to that one house. Landa was qualified by the SEC under Regulation A+ (Tier 2) in June 2021 — the legal mechanism that let it sell to non-accredited retail investors — and was structured to operate as a REIT, distributing rental income monthly.

For the access problem in this niche, Landa was a real answer. If you're shopping that same problem today, our best real estate crowdfunding apps for 2026 and our list of platforms for non-accredited investors point to platforms that, unlike Landa, are still functioning. That obituary framing is deliberate: the rest of this review is about why the concept survived and the company didn't.

What Happened to Landa: The Honest Status as of October 2026

Most "Landa review" pages still describe it in the present tense as a place you can invest. That is misleading. Here is the verified current state.

Landa's own site no longer sells anything, and says so in its footer: “At this time, there are no active offerings on the platform. Deposits and secondary trading are temporarily paused,” followed by “We are working diligently to resume investing and trading on the platform. Thank you for your patience.” (checked October 11, 2026). The headline has changed since our last check, though: the page title now reads “Landa | Investment management and property management,” and the copy talks about “the properties we manage.” That is the issuer's own description, not a filing, but it points the same way as the SEC record: a manager running the houses it still has, not a marketplace taking deposits. The platform itself has been down since April 2025.

The freeze is documented in Landa's own SEC filings. On April 9, 2025, Landa App LLC filed a Form 1-U ("Current Report") titled around a "platform down" event, in which the company disclosed: "the Manager had multiple communications with its platform's servers provider to address disruption affecting access to its platform... As a result of this service disruption, investors may face difficulties viewing their accounts online." It was signed by CEO Yishai Cohen.

That filing was not a blip. Pulling the filing histories of Landa App LLC (CIK 0001815103), Landa App 2 LLC (CIK 0001875877) and Landa App 3 LLC (CIK 0001886606) from SEC EDGAR, the entries since 2025 are dominated by foreclosure notices, property "disposition" reports and affiliate-loan reports — i.e., houses being sold off — including a June 15, 2026 report of twelve more sales by Landa App LLC and, newest of all, Landa App 3 LLC's September 16, 2026 report of a foreclosure sale on September 1. In other words, a year and a half after going dark, the legal entities are still shedding properties, not reopening for business.

Independent reporting matches the filings. TechCrunch's May 23, 2025 investigation — "Landa promised real estate investing for $5. Now it's gone dark." — documented frozen withdrawals, halted dividends (one early user said his stopped in January), and 130+ Better Business Bureau complaints. Bisnow reported the court order handing 119 properties to a lender-appointed independent manager. On Trustpilot and the BBB, the picture is uniformly grim: 12-to-18-month waits met with "working on it" responses, and accounts users cannot access.

If you take one thing from this section: you currently cannot reliably deposit, withdraw, sell, or in many cases collect dividends. That alone disqualifies Landa as an active investment, regardless of how good the original idea was.

The Landa App Lawsuit: Where the Cases Stand in October 2026

People search for "the Landa app lawsuit" as if it were one case. The filings describe several, and they say different things. We cite each by docket number, describe each side's position as an allegation, and leave private individuals out.

• The lender case: New York Supreme Court, Commercial Division, Index No. 659157/2024. According to Landa's own Form 1-U of December 3, 2024, the lender filed the complaint (Viola Credit GL I L.P. v. Landa Holdings) on November 19, 2024, after a notice of October 29, 2024 alleging that the borrower series and the manager were in default under the bridge loans and the manager's financing agreement. A temporary restraining order of November 26, 2024 gave interim authority over certain series to a new manager, and on December 12, 2024 the court “granted the Plaintiff's motion in replacing the Manager for the certain selected Series LLCs” (Form 1-U of December 19, 2024). Landa Holdings says it “disputes the Lender default claim and the injunctive relief granted by the court.” That December 19 filing lists 88 “Borrower Series”; the 119 homes in earlier coverage is Bisnow's count, and we could not reconcile the two from the filings. Status: we found no later Landa filing that reports a ruling on the merits, a settlement of this case or the manager's reinstatement. One late-2025 filing does refer to sales “as required by the settlement” without saying which settlement. State dockets are not on CourtListener, so the current state of this case is unconfirmed.
• The federal foreclosure case: Eastern District of New York, No. 1:25-cv-01939. Allison Lending LLC sued on April 8, 2025 to foreclose a mortgage on one Brooklyn commercial property held through a Landa App 3 series. The plaintiff alleges that payments stopped around November 1, 2024 and that the unpaid principal is $1.3 million; the clerk entered default on July 23, 2025 after the defendants did not answer. The defendants' side, in a November 2025 emergency motion, was that the plaintiff unlawfully acquired Landa App 3 at an August 2025 auction in violation of the New York Uniform Commercial Code. The district judge denied the temporary restraining order on November 16, 2025 and the preliminary injunction on November 20, 2025. After a second emergency motion on January 23, 2026, a magistrate judge wrote on February 10, 2026 that “Landa fails to establish irreparable harm” and recommended denying it. That is a recommendation, not a final ruling, and it does not decide whether the UCC sale was valid. Status (CourtListener docket, checked October 15, 2026): after the February 10 recommendation the docket lists settlement-conference entries on February 9, 11 and 27, a further “Report and Recommendations” on February 26, orders on March 3, a status report and an “Expedite” entry on March 27, a notice on July 8, an order on July 23, a notice of appearance on September 21 and a “Notice of Acceptance with Offer of Judgment” on September 23, 2026. We could not retrieve the text of any of these (we did not check PACER), so we cannot say whether the February 10 recommendation was adopted, who made or accepted the offer of judgment, or what it covers. Landa's own Form 1-U of February 4, 2026 said the manager was “evaluating potential settlement and loss–mitigation alternatives.” No Landa filing on EDGAR after that date reports an outcome of this case.
• Three Kings County cases over other Brooklyn properties (Index Nos. 514059/2025, 507903/2025 and 541931/2025). The February 10, 2026 report lists them as pending state foreclosure or title actions against Landa App 3 and others. Landa App 3's Form 1-U of November 7, 2025 says bridge lenders on three Brooklyn properties “have initiated foreclosure actions.”
• Manager-initiated disputes. Landa App LLC's filings say the manager disputes the foreclosures of 8796 Parliament Place (January 2025, which the manager blamed on “an administrative error on the part of the lender”) and 1007 Leeward Lane (March 3, 2026, citing “lack of statutory notices”), and will contest them. We found no outcome in later filings.

What no ruling changes: each home is its own series with its own debt, so a ruling in one case does not reinstate dividends, reopen the app or make a series whole. What reaches investors is decided property by property, in the sales and foreclosures in the next section.

What Landa's Filings Show About the Properties (2025 to September 2026)

• The last periodic report (Landa App LLC, Form 1-SA, six months to June 30, 2024, filed January 3, 2025): rental income of $1,086,116 against interest expense of $1,754,669, and the same going-concern language as before. No later 1-K or 1-SA has been filed by Landa App LLC, Landa App 2 LLC or Landa App 3 LLC.
• July 1, 2025: the lender proceeded with foreclosure sales on a block of Georgia series after, in the manager's words, “the buyer unilaterally terminated the 10 PSAs a day before the scheduled foreclosures” (Form 1-U of July 8, 2025).
• August to November 2025: single-property sales continued; the sale of 1246 Elgin Way, Riverdale, Georgia (August 20) passed $22,774.90 to investors, while the sales of 1741 Park Lane, Griffin, Georgia ($162,000), 7349 Exeter Court, Riverdale ($135,000), and 593 Country Lane Drive and 729 Winter Lane, Jonesboro ($87,000 and $102,000) each paid out exactly the sale price in liabilities and expenses.
• 2026: a sale of 773 Villa Way, Jonesboro (January 29); foreclosure sales of three Covington and Stonecrest series on February 3 after “the lender did not accept the short sale proposal or postpone the foreclosure”; seven sales reported March 31 and twelve on June 15 (see what Landa investors actually got back); and Landa App 3 foreclosures on June 2 (no proceeds to the series) and September 1 (6696 Mableton Parkway SE).
• Affiliate lending: Landa App, App 2 and App 3 filings of May to July 2026 report series borrowing from Landa Financing LLC at 10% “in response to imminent payment demands by senior lenders in connection with reinstatement amounts required to avoid events of default.” Landa Financing's own estimated NAV was $7.10 a share at June 30, 2026, against an offering price of $10 a share, and its semiannual report carries going-concern language.

Minimum, Pricing, and the Fee Reality

Here is what Landa charged when it was operating — verified against Landa's materials and corroborated by independent reviews. Treat all of it as historical, since the platform isn't transacting.

The fee headline matters. Landa leaned on "no asset management fee," which is the kind of line aggregators repeat approvingly. But a one-time acquisition fee around 6% means a meaningful chunk of your first dollars went to Landa, not into the house — and on a property where the dividend yield might be 3-5% (when paid at all), an 8%-of-rent management fee is not trivial. The fee structure wasn't predatory by industry standards; it was understated in the marketing. For comparison-shopping the fee math on a still-functioning platform, our Arrived Homes vs Ark7 breakdown does the same forensic accounting.

The Secondary Market: Liquidity That Was Always Thinner Than Advertised

Landa's signature differentiator was supposed to be liquidity — sell your shares to other users any time, no five-year lockup like Arrived. In practice this was the weakest part of the model even before the collapse.

Three structural facts:

1. It was never an exchange. Landa's own 1-SA filing states plainly: "The Company does not currently intend to list the Shares for trading on a stock exchange or other trading market." All trading happened inside Landa's app, between Landa users. No NYSE, no Nasdaq, no third-party venue.
2. Liquidity required a buyer. A peer-to-peer in-app market only works if someone wants to buy your specific house's shares at your price. For unglamorous Atlanta-suburb rentals with patchy dividends, demand was thin. "I can sell anytime" quietly became "I can list anytime."
3. It's now zero. Secondary trading is explicitly paused. The liquidity that justified Landa over a locked-up competitor is, today, entirely absent.

This is the broader lesson for the category. Several low-minimum platforms advertise "liquidity" via internal markets — Lofty's tokenized model and others. Internal markets are only as liquid as the counterparties inside them, and they can be switched off. We unpack this systematically in our real estate crowdfunding liquidity guide for 2026: if a platform controls the only place you can sell, your "liquidity" is a permission, not a right. Cityfunds is living proof: its secondary market launched in May 2025 and froze about a month later.

What Actually Went Wrong (The Forensic Timeline)

This is the part the glossy reviews skip. The failure was not a single app bug; it was a debt-fueled business model meeting higher interest rates, with operational and (alleged) governance failures on top.

• 2019: Founded in NYC by Yishai Cohen (then in his mid-20s) and Amit Assaraf.
• June 2021: SEC qualifies Landa App LLC under Reg A+ Tier 2 — retail can buy in.
• August 2022: Landa announces it has raised $33M in venture equity (NFX, 83North, Viola Ventures) plus tens of millions in debt; reports nearly 25,000 users in its first year as a public marketplace.
• Late 2022–2023: Interest rates spike. Per Bisnow's reporting on the SEC filings, dozens of Landa's floating-rate loans reset from roughly 4.5% to 7%–12.5%. A debt-heavy model of buying $80K–$100K houses with leverage becomes a trap.
• May 2023: Landa App LLC's audited annual report for 2022 carries a going-concern warning: "substantial doubt about Landa App LLC and each Series' ability to continue as a going concern." It is the last annual report Landa App LLC has filed; Landa App 3 LLC filed a Form 1-K for 2023 on June 3, 2024.
• April 2024: The Synapse/Evolve banking fiasco — Synapse, a banking-as-a-service middleware firm (the customer money itself sat in accounts at four partner banks, American Bank, AMG National Trust, Evolve and Lineage, per the bankruptcy trustee), files for bankruptcy, snarling access to funds across many fintechs. Landa's own offering circular named Synapse as the custodian of cash held in investors' Landa accounts, with Evolve Bank & Trust providing the bank services; we found no public report quantifying the effect on Landa users.
• May 2024: Lenders begin foreclosure filings on Georgia properties.
• June 2024: A Bisnow analysis of Landa's SEC filings finds 125 of the 218 properties across its three LLCs (roughly 57%) held zero cash and paid no distributions that month.
• November 2024: Viola Credit and L Finance sue Landa in New York Supreme Court, alleging "numerous defaults" on $35M+ in loans, unpaid property taxes forcing fire sales, and failure to collect rents.
• Late 2024 / January 2025: Dividends broadly stop for many investors.
• December 2024 – January 2025: After a temporary restraining order on November 26, the court on December 12 replaced Landa as manager of certain series with a court-appointed independent manager (Bisnow counted 119 properties; the SEC filing lists 88 Borrower Series), handing that manager control of their rents and bank accounts. In January 2025 the independent manager alleged that Landa had drained about $724,000 from the properties and told tenants to pay rent to a new bank account, and the judge threatened to hold Landa in contempt and ordered it to explain itself (press reports of allegations; Landa disputes the lender's claims).
• April 2025: Platform/app goes dark; CEO blames "servers." SEC "platform down" 1-U filed.
• May 23, 2025: TechCrunch publishes its "gone dark" investigation.
• July 1, 2025: Lender foreclosure sales hit a block of Georgia series after a buyer terminated its purchase agreements the day before (Form 1-U of July 8, 2025).
• February 3, 2026: Foreclosure sales of three more series (Form 1-U of February 4, 2026); more single-property sales and foreclosures follow through spring 2026, including twelve sales reported on June 15.
• June 2, 2026 and September 1, 2026: Two Landa App 3 properties are lost at foreclosure sales (Forms 1-U of June 26 and September 16, 2026).
• Through September 16, 2026: SEC EDGAR shows a continuous stream of foreclosure, disposition and affiliate-loan filings; the slow-motion liquidation is still running, and the consumer app has not reopened.

That is not a company "working on a fix." That is a wind-down playing out in court and in SEC filings.

Is Your Money Safe? What the Series LLC Structure Actually Protects

A fair question: doesn't the series-LLC / "your shares are securities, not deposits" structure protect investors? Partly — and Landa is unusually candid about the limits in its own help center.

On bankruptcy, Landa states: "In the event of a bankruptcy - the bankruptcy is managed by the bankruptcy court and we can't guarantee the outcome," and even warns that "a bankruptcy court could determine that the assets of one Series should be applied to meet the liabilities of the other Series." In plain English: the per-house separation that's supposed to wall off your investment might not hold if a court decides otherwise.

What this means practically:

• You own equity in a specific house, not a Landa account balance. If that house is sold (including via foreclosure or court-ordered disposition), you are entitled to your pro-rata share of any surplus after the lender, taxes, fees, and costs are paid. On leveraged houses that lost value and missed tax payments, surplus can be small or zero.
• Lenders are senior to you. The Viola/L Finance debt sits ahead of equity holders. Equity gets paid last in a liquidation — which is the position retail Landa investors are now in.
• Custody risk is separate from property risk. The Synapse mess showed that even the cash sitting in your app wasn't protected like a bank deposit.

So: "securities, not deposits" is accurate, but it cuts against you here. It means there's no FDIC backstop and you sit at the bottom of the capital stack in exactly the scenario that's unfolding.

Landa vs Arrived vs Ark7 vs Lofty (Honest Comparison)

Because the most common search is "landa vs arrived," here is the head-to-head against the low-minimum platforms CWW covers — scored on what matters for retail investors today.

The takeaway for Landa vs Arrived specifically: they share the series-LLC, fractional-SFR-equity DNA, but Arrived is still functioning, is backed by deep-pocketed investors (Bezos Expeditions among them), and has actually exited properties and returned capital — while a court has replaced Landa as manager of certain series (119 homes, per Bisnow). Arrived's flaw is the opposite of Landa's: its dividend yields are often disappointingly low (we did the fee-and-yield math here) and its liquidity is restrictive. But "low returns at a working company" beats "great pitch at a frozen one." If you want the cheapest functioning entry, Ark7 at $20 or Concreit at $1 are the live alternatives in the ultra-low-minimum bracket — and Concreit's pooled-fund + weekly-redemption design is structurally the opposite of Landa's per-house illiquidity.

Pros and Cons

Should You Use Landa in 2026?

No. Not because the original product was a scam — it wasn't, and the structure was real — but because there is no functioning product to use. The honest framing:

• Prospective investors: Do not deposit money. There are no active offerings, and even if there were, the operating company's solvency is the open question. Put new capital into a platform that is actually transacting and returning money.
• Existing Landa investors: You are now effectively a junior creditor / equity holder in a wind-down. Monitor the SEC EDGAR filings of Landa App LLC (CIK 0001815103), Landa App 2 LLC (CIK 0001875877) and Landa App 3 LLC (CIK 0001886606), the New York lender case (Viola Credit GL I L.P. v. Landa Holdings, Index No. 659157/2024) and the federal docket No. 1:25-cv-01939; keep your own records of holdings and any dividends received; and set expectations for a partial, slow recovery realized only as individual houses are sold.

If your goal was the original Landa thesis — own real rental property cheaply — and you'd rather control the asset yourself instead of trusting an app's solvency, you can analyze and buy an actual rental directly. A tool like DealCheck (reader code BESTDEAL) runs the cash-flow, cap-rate, and rehab numbers on a specific property before you commit a cent — the kind of due diligence Landa's leveraged buys arguably skipped.

For diversified, still-operating low-minimum options, start with our best apps for non-accredited investors and how to start investing in real estate with $500.

FAQ

The Bottom Line

Landa deserves real credit for one thing: it made owning a slice of a specific rental house cost about as much as a coffee, and it did the regulatory work to let anyone do it. The idea was right, and the access problem it attacked is real. But a great access story sitting on a leveraged, rate-sensitive balance sheet — with thin internal-only liquidity and (per the lawsuits) governance lapses — is exactly how you end up with frozen accounts, halted dividends, and a year-long "we're working on it" banner.

The CWW verdict that aggregators won't print: Landa in 2026 is a wind-down, not an app. Do not put new money in. If you're already in, treat yourself as a creditor, track the SEC filings, and brace for a slow, partial recovery. And if the original Landa pitch is what drew you in, the lesson is to favor platforms whose liquidity is a right rather than a permission — start with our best real estate crowdfunding apps for 2026 and the still-functioning, ultra-low-minimum options like Ark7 and Concreit.

Update, August 2026: we have since added up the twelve property sales in Landa's June 15, 2026 SEC filing: nine returned exactly nothing to investors. An earlier March 31, 2026 filing disclosed seven more sales, two of which also returned nothing. The full table, with the primary filings, is in what Landa investors actually got back.