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Katten Represents Resort Company in RICO Suit

Firm News | May 4, 2018

Katten recently filed a complaint in the Middle District of Florida on behalf of Club Exploria LLC and Club Exploria Management LLC, which develops and manages timeshare resorts, against a law firm that devotes all or substantially all of its time attempting to convince consumers that a simple and legal method exists to escape legitimate timeshare mortgage obligations. The suit alleges that the defendant firm uses "aggressive" and "dramatic" marketing tactics, in violation of applicable ethical rules, to encourage timeshare owners to stop making payments on their timeshares, without regard to the factual circumstances of any given situation and in some cases, in spite of directly contradictory contractual representations made by their clients. The resort owner has asserted a number of claims against the Defendants, including tortious interference, violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act, and violations of state and federal statutes.

Timeshare cancellation has become a burgeoning industry, and timeshare developers in Florida and across the country have been increasingly confronted by unscrupulous "exit companies" that use questionable and unlawful tactics. Club Exploria is the latest of a number of developers who have begun to file suits against exit companies to curb and recover damages they have suffered. The Katten litigators are William Moore, partner, and Michael Chiusano, associate, from the firm's Dallas office.

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