Timeshare ‘exit’ company resolves lawsuit against property giant Westgate
Adds comment in paragraph 4
By Mike Scarcella
Oct 10 (Reuters) -A company that helps timeshare owners undo their contracts has settled a lawsuit against vacation property development giant Westgate Resorts that accused it of scheming to eliminate competition for cancellation services.
Wesley Financial Group and Westgate said in a joint filing in Orlando federal court on Wednesday that Wesley was dismissing its case, which alleged violations of federal advertising and antitrust laws. No settlement terms were disclosed.
A U.S. judge dismissed the lawsuit in August, but Wesley was preparing to file a second amended complaint. Wesley had accused Florida-based Westgate of attempting to control the market for timeshare “exit” services that let consumers get out of their purchase contracts.
Westgate and Wesley in a statement on Thursday said "the parties are pleased that the matter has been resolved in a manner that they both find satisfactory."
Westgate had denied any wrongdoing.
Timeshare properties allow more than one person to share ownership or usage rights for a property, which can include vacation homes such as beach or ski condos.
Founded in 2011, Wesley markets services for dissatisfied timeshare owners to end unwanted timeshare obligations.
The company told the Florida court it had helped thousands of timeshare clients undo contracts they allegedly signed in the face of “manipulative, fraudulent, and high-pressure sales tactics.”
The dismissal appears to be part of a wider agreement between the two companies, which have battled for years in court.
Westgate last week settled a lawsuit it filed against Wesley in Nashville, Tennessee, federal court in 2020 accusing it of deceptive business practices, court records show.
The lawsuit accused Wesley of running a fraudulent "timeshare cancellation scheme with no legitimate foundation." Westgate said the judge in that case last year found Wesley’s practices violate a Tennessee state consumer protection law.
The lawyers in that case said they will ask a judge to dismiss the lawsuit by Nov. 21.
The case is Wesley Financial Group LLC v. Westgate Resorts Ltd et al, U.S. District Court for the Middle District of Florida, No. 6:23-cv-02347-RBD-LHP.
For Wesley Financial: John Bennett and Paul Mascia of Nardella & Nardella; and Patrick Bradford of Bradford Edwards
For Westgate: Richard Epstein, Jeffrey Backman and Roy Taub of Greenspoon Marder
Read more:
Vacation timeshare developer Westgate defeats ‘exit’ company’s lawsuit
Timeshare 'exit' company sues Westgate vacation property operator
Reporting by Mike Scarcella
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