ORLANDO, FL (August 7, 2013) — A class action lawsuit filed on behalf of timeshare owners at Festiva’s Orlando Resort alleging that the resort’s developers and managers as well as RCI, a timeshare interest exchange bank, engaged in unfair and deceptive practices and racketeering has been removed to federal court.
The class action suit, Reeves, et al. v. RCI, Zealandia Holding Company Inc., et al., cause no. 13-CA-866-MF, was filed March 1 in the 9th Judicial Circuit Court of Florida, in Osceola County. On April 12, 2013, the suit was removed to the U.S. District Court for the Middle District of Florida, Orlando Division, cause no. 6:13-cv-00597.
The suit alleges that, beginning in 2004, approximately 900 parties purchased timeshare interests in Celebration World Resort Owners Association, located in Kissimmee, Fla., from B.L. Vacation Ownership Inc. Between 2008 and 2011, timeshare owners were sold upgrades for a timeshare exchange program by Celebration World Resort Marketing that involved a point system administered by RCI. The owners were told that the timeshare exchange program would dramatically increase the number of RCI points they owned which could be applied to future timeshare reservations. However, the RCI points were later revoked by Zealandia, the company that purchased the resort. The complaint alleges that Zealandia admitted the RCI points program was “distorted” and “too good to be true.”
The amended complaint adds class representative plaintiffs and counts, including the charging of RCI and others with violations of Florida’s Deceptive and Unfair Practices Act, Civil Conspiracy and Federal Racketeering Charges (RICO) 18 USC 1962(d).
Michael D. Finn of Finn Law Group states, “RCI administered a program that supplied overinflated points. Those points were used by Celebration World Resort Marketing to sell timeshare upgrades. By processing, and thereby validating the issuance of these ‘upgrade points,’ RCI allowed the fraudulent transactions to be completed.”
The timeshare owners seek a refund, rescission of the upgrade sales contracts, attorneys’ fees and other relief the court deems proper.
The Finn Law Group, which has offices in Florida and Michigan, represents consumers in timeshare and related real estate matters. For more information, contact Michael D. Finn by calling 855-346-6529 or [email protected]