Investors who bought Millrose Properties (MRP) securities between February 7, 2025 and October 2, 2026 may be covered by a proposed class action alleging Millrose told the market it would not lease its properties while it bought and rented out finished Lennar homes. No class has been certified and there is nothing to file yet.
Allegations Only · No Settlement Yet
This article describes a class action complaint. The statements below are unproven allegations. Millrose Properties, Inc. and its officers have not been found liable, there is no certified class, and nothing to claim at this time. This page is informational and is not legal advice.
What Is This About?
Two Millrose Properties investors filed a proposed securities class action against the company on October 9, 2026 in the U.S. District Court for the Southern District of Florida. The case is Rubenstein v. Millrose Properties, Inc., No. 9:26-cv-81386. It is brought on behalf of everyone who bought or otherwise acquired Millrose securities between February 7, 2025 and October 2, 2026.Millrose was spun off from the homebuilder Lennar in February 2025 to hold land for homebuilders, and its stock trades on the New York Stock Exchange under the ticker MRP. The complaint alleges that Millrose repeatedly told investors it would not have leases or tenants on its properties, but did not disclose that it would buy roughly $200 million of finished homes from Lennar and rent them out at a loss. The defendants are Millrose, its chief executive Darren Richman and its chief financial officer Garrett Rosenblum.
The case is at the complaint stage. Millrose has not responded on the docket, no class has been certified, and there is no settlement, fund or claim form.
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How Millrose Was Supposed to Work
Millrose began trading on February 7, 2025, the day its spin-off from Lennar took effect. Its business, as described in its filings, is land banking: it holds homesites and pays for their development, and homebuilders, mainly Lennar, pay it fees for options to buy the lots back when they are ready to build. Millrose described itself as engaging in land purchases, horizontal development and homesite option purchase arrangements for Lennar and potentially other builders.The complaint quotes a series of filings, including the January 2025 prospectus, registration statements and amendments filed in late 2025, and the annual report filed February 27, 2026. In the earlier documents, Millrose said it did not and would not have lease agreements on its properties, did not intend to enter into any in the foreseeable future, and would not have tenants or occupants on them. The 2026 annual report said Millrose generally does not enter into occupancy arrangements with builders or allow tenants on its homesite properties.
What the Complaint Alleges
The complaint alleges those statements were misleading because Millrose’s activities were not limited to land banking, it would in fact enter into leases and have tenants, it would buy about $200 million of properties from Lennar, and it would lease them out at a loss.It says the facts came out on October 2, 2026, when Hunterbrook Media published a report on Millrose’s purchases. As quoted in the complaint, the report said Hunterbrook had identified more than 700 Millrose purchases of Lennar homes across at least 51 counties in 15 states, an estimated $200 million or more in about a month, with at least 356 of them in the final week of Lennar’s fiscal quarter. It said the homes appeared to return about 5% a year after expenses, less than the 6.5% to 6.75% interest on Millrose’s latest bonds, and that Millrose appeared to pay about 13% more than individual buyers in the same communities. The report itself noted that Millrose had changed its agreements with Lennar in August to allow it to buy finished homes and rent them out, and that differences between houses and unrecorded incentives could affect its price comparisons.
According to the complaint, Millrose shares fell $2.10, or 8.5%, from $24.61 at the close on October 2, 2026 to $22.51 on October 5. The claims are brought under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. None of the allegations has been tested in court.
Who Is in the Proposed Class?
The proposed class is every person and entity that bought or otherwise acquired Millrose securities between February 7, 2025 and October 2, 2026, inclusive, and was damaged as a result. The defendants, Millrose’s officers and directors, their immediate families and legal representatives, and any entity the defendants control are excluded. The complaint estimates the class includes at least hundreds or thousands of investors, since millions of Millrose shares traded publicly during the class period.Lennar is not a defendant, and the class does not cover Lennar shareholders as such. The class exists only as a proposal until a court certifies it, and its definition can change as the case proceeds.
What Happens Next
Under the Private Securities Litigation Reform Act, plaintiffs’ law firms published notices of the case, which give December 8, 2026 as the deadline for investors to ask the court to appoint them lead plaintiff. That date comes from the notices, not from a court order. After the court picks a lead plaintiff and lead counsel, an amended complaint usually follows, and the defendants typically move to dismiss.The complaint asks the court to certify the class and award damages, interest, costs and attorneys’ fees, and it demands a jury trial. It was filed by Gainey McKenna & Egleston, with Eggnatz Pascucci as local counsel. Members of a proposed securities class generally remain in the class without seeking the lead plaintiff role. There is no money available unless the case produces a settlement or judgment, which would come with its own notice and claim process.
Questions
Who is covered by the Millrose Properties securities class action?
The proposed class is every person and entity that bought or otherwise acquired Millrose Properties securities between February 7, 2025 and October 2, 2026, inclusive, and was damaged. Defendants, Millrose officers and directors, their immediate families and entities they control are excluded. No class has been certified.
What is the December 8, 2026 deadline in the Millrose case?
It is the deadline, stated in notices published by plaintiffs’ law firms, for investors to ask the court to appoint them lead plaintiff under the Private Securities Litigation Reform Act. It is not a claim deadline. Members of a proposed securities class generally remain in the class without seeking that role, and there is no money or claim form available.
Is Lennar a defendant in the Millrose lawsuit?
No. The defendants are Millrose Properties, Inc., its chief executive Darren Richman and its chief financial officer Garrett Rosenblum. Lennar features heavily in the complaint as the company that spun off Millrose and sold it the homes, but it is not named as a defendant.
What did the Hunterbrook report say about Millrose and Lennar?
As quoted in the complaint, Hunterbrook Media reported that Millrose had bought more than 700 Lennar homes across at least 51 counties in 15 states, an estimated $200 million or more in about a month, and was renting them out at what appeared to be a loss. The report also said Millrose had changed its agreements with Lennar in August to let it buy and rent out finished homes. The complaint relies on the report; its findings have not been tested in court.
Has Millrose responded to the securities lawsuit?
Not on the court docket as of October 13, 2026. The case was filed October 9, 2026, and the allegations are unproven. No court has found Millrose or its officers liable.
Sources
- CourtListener docket — Rubenstein v. Millrose Properties, Inc., No. 9:26-cv-81386 (S.D. Fla.)
- Class action complaint — filed October 9, 2026 (37 pages)
- Plaintiffs’ counsel notice — class period and the December 8, 2026 lead plaintiff deadline (PR Newswire, October 12, 2026)
