$1billion Law Suit against Diamond Resorts International!
Spain has been at the forefront of enforcing timeshare laws in Europe, so far the Supreme Court has made 42 judgements in favour of the consumer, these are now part of law and all courts must abide by them.
It has cost the industry millions of euros in payouts with many more in the pipeline. All this because for years they have ignored the laws put into place in 1999, which are there to protect the consumer.
But this now pales into insignificance with the latest lawsuit in America.
In a class action filed in Las Vegas, Diamond are being sued for $1billion. Yes, that is correct a whopping $1billion!
Irene Parker has sent in this report on what this lawsuit is all about. According to this document a trial by jury has been demanded, along with the law firm leading the action who have a very good reputation, it has the hallmarks of a long and fierce battle.
According to our sources this lawsuit is not just for those in the US, but it could possibly be left open for Europeans who purchased in the US to join the action, especially any purchaser who was 60 years or over when signing. We are waiting confirmation of this as there may just be statute of limitations in place.
But this could be good news for many.
Billion Dollar Lawsuit Filed against Diamond Resorts International
Law Firm: Albright Stoddard Warnick & Albright
Case No. 2:17-CV-00248
Filed in Las Vegas Federal District Court
By Irene Parker: February 1, 2017
The law firm of Stoddard Warnick & Albright filed a billion dollar lawsuit against Diamond Resorts International January 29, 2017. The lawsuit alleges Diamond Resorts (DRI) ensnared thousands of elderly consumers in its deceptive and fraudulent scheme to sell points-based timeshare memberships.
According to the complaint, which was filed on behalf of lead plaintiffs Ilona and Lester Harding, along with thousands of other elderly consumers, buyers typically spent tens of thousands of dollars or more for upfront Membership fees and upsold Membership levels. Memberships were accompanied by hefty annual assessments that continue in perpetuity.
Several plaintiffs were named in the lawsuit. Among those named:
- Diamond Resorts Holding, LLC a Nevada LLC
- Diamond Resorts International, Inc., a Delaware corporation
- Diamond Resorts International Marketing, Inc., a California corporation
- Diamond Resorts International Club, Inc., a Florida corporation
- Diamond Resorts Management, Inc., an Arizona corporation
- Diamond Resorts U.S. Collection Members Association, a Delaware corporation
- Diamond Resorts Financial Services, Inc., a California corporation
Of particular note to Diamond Resort Owners is the absence of any “collection” except the US collection. Other Diamond Resort collections not named in the lawsuit include Hawaii, Premier Vacation Club, California and Monarch Grand Vacations Collections.
Former CEO David Palmer served as President and/or Director (and sometimes as both) for at least six of the Defendant entities; Jared Finkelstein serves as Secretary and/or Director (and often both) for at least six of the Defendant entities; and Lilian Luu serves as Treasurer and/or Director (and sometimes both) for at least six of the Defendant entities.
The law firm Albright Stoddard Warnick & Albright is one of the oldest law firms in Nevada, in existence for 40 years. According to the firm’s website, they have represented clients in many high profile and complex bench and jury trials in Southern Nevada, in both state and federal court, representing contractors, lenders, and owners on large commercial projects. The firm successfully defended a general contractor in a bench trial, which lasted intermittently for well over a year, arising out of the construction of a major Strip hotel. At the time, it was the longest bench trial in Clark County history. Included among the firm’s numerous institutional clients are American Express, Wells Fargo and Hard Rock Café International.
According to the complaint, the lawsuit alleges the elderly were targeted because of their vulnerability and time available to travel. Elderly is defined as anyone 60 years or older at the time of purchase. The elderly were induced to purchase vacation memberships in a same day sale without being advised as to the lack of a secondary market by intentional design. Memberships were accompanied by, at times, dramatically escalating maintenance fees.