Diamond continues fight against timeshare exit firms
Diamond Resorts is continuing its fight against so-called ‘timeshare exit companies’ in the US, with its latest lawsuit in the state of Florida.
The global vacation ownership leader recently announced that a Florida federal court has allowed its lawsuit against DC Capital Law Firm LLP and a group of so-called “timeshare exit companies” known as the “Newton Group” to proceed.
Diamond’s lawsuit accuses the firms, along with Defendant, US Consumer Attorneys, PA of false advertising, unfair competition, and tortious interference with contracts between Diamond and its members.
The ruling found that Diamond’s claims of false advertising are consistent with the pleading requirements under the Lanham Act, and that the Complaint meets the applicable standard to allege fraud under Federal Rule of Civil Procedure 9(b).
The Court’s decision to deny the Defendants’ Motions to Dismiss also allowed Diamond to file an amended Complaint, which will allege additional examples of false and misleading advertising by DC Capital and the Newton Group.
‘Deceitful timeshare exit companies’
Mike Flaskey, Diamond’s chief executive officer, said: “We will continue to do everything in our power to combat deceitful timeshare exit companies that prey on our members.
“We want to reemphasize that many of these firms are not acting in the best interests of owners; rather, they are setting out to take advantage of them for their own gain.
“Though the vast majority of our members love their vacation experiences with us, when life circumstances arise, we urge our members to speak to us directly regarding transitioning out of vacation ownership in a safe and legal manner.”
Diamond continues to fight to protect its members from the disturbing rise of “timeshare exit companies” and the associated attorneys that charge timeshare owners thousands of dollars in upfront fees, but are unable to deliver on their promises. These companies employ fraudulent tactics like false and deceptive advertising to influence consumers to take action, often leaving them in financial peril.
The latest news comes days after Diamond obtained a preliminary injunction against a variety of Missouri-based third-party companies, including Exchange Points, PR Rewards, VMG Resorts, Kyle Brown and Vacation Management, that it alleges prey on and scam vacation owners.
Diamond also recently was awarded a permanent injunction against Castle Law Group PC, its principals and related entities, after the Tennessee court disbarred Judson Wheeler Phillips, former senior partner with Castle Law.