CASES
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Reiser Law represents over 150 investors in a lawsuit against auditor EisnerAmper LLP for their alleged deficient audting work relating to the Direct Lending Investments (DLI) Ponzi scheme. Litigation is ongoing.
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Reiser Law represents over 150 investors in suing the valuation firm Duff & Phelps, LLC relating to their alleged valuation work on the Direct Lending Investments (DLI) Ponzi scheme. Litigation is ongoing in the Southern District of New York.
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Federal Court in the Southern District of California grants class certification in suit over Omni Hotels rental management scheme
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S.D. Cal. Case No. 11-CV-1842-GPC
In late 2017, we obtained final approval of a $51 million settlement of a class action we brought on behalf of more than 250 purchasers of hotel-condominium units in the Hard Rock Hotel & Condominiums in San Diego. The developers told the purchasers that they had to close escrow as the country was sliding into recession when, in fact, the purchasers had a federal statutory right to rescind their purchase contracts under the Interstate Land Sales Full Disclosure Act, 15 U.S.C. §§ 1701 et seq. (“ILSA”), a federal consumer protection statute that was largely ignored in California before we filed this case. We initially lost on summary judgment, but then convinced the federal court presiding over the case to reverse that decision and grant partial summary judgment in our favor. The Ninth Circuit affirmed that ruling on an interlocutory appeal. Beaver v. Tarsadia Hotels, 816 F.3d 1170 (9th Cir.), cert. denied, 137 S. Ct. 113, 196 L. Ed. 2d 41 (2016). The developers then alleged malpractice against their former lawyers at Greenberg Traurig, which later contributed $41 million to the settlement.
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D. Colo. Case No. 16-CV-01301-PAB (RCHFU); Cal. Superior Court, City and County of San Francisco Case No. CGC 15-545987 (Petrick); E.D. Cal. Case No. 16-CV-00237-MCE (Reiser)
In these three related cases, we represent the purchasers of more than 300 fractional interests who paid premium prices for what they thought would be exclusive access to Ritz-Carlton Destination Club properties in Aspen, San Francisco, and Lake Tahoe. There are some differences, but the core claim in each case is that the Marriott Defendants breached fiduciary duties owed to the plaintiffs by merging the exclusive and expensive Ritz-Carlton Destination Club with the massive and cheaper Marriott Vacation Club, and then by using the “halo effect” of the coveted Ritz-Carlton brand to market and sell Marriott Vacation Club points to the masses. The Marriott Defendants profited immensely, while value of the fractional interests that our plaintiffs purchased plummeted for the simple reason that nobody is willing to pay premium prices on the secondary market when the same access can be obtained by purchasing Marriott Vacation Club points for much less.
Click here to see our complaint in Petrick.
See also this article in The Aspen Times. The Reiser Law portion of this case has been settled.
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D. Colo. Case No. 19-CV-01870-RM
The Hyatt Grand Aspen was supposed to be the crown jewel of a network of luxury fractional timeshare properties within the Hyatt Residence Club. Hundreds paid premium prices for fractionals at the Hyatt Grand Aspen, which entitled them to specific weeks each year in Aspen as well as access to the other properties in the club. But the Hyatt entities that initially developed and ran this offering kept 20% of the fractionals unsold, and their successors –– ILG and Marriott Vacations Worldwide –– used that inventory to create a new points-based timeshare product. Defendants abandoned the initial offering, gutting the value of the original fractional interests. Hired by the fractional owners’ association, we filed a lawsuit for breach of fiduciary duty and fraud, among other claims.
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Napa County Superior Court Case Number 26- 47855
Lead counsel in an ILSA and UCL based rescission action seeking deposits retained by defendants pertaining to 7 condominium units at the Westin-Verasa in Napa, California. Status: Confidential settlement reached in 2011.
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Reiser Law represented 13 homeowner plaintiffs at the Aventura Isles subdivision located in Aventura Florida related to the alleged nondisclosure of soil contamination during the purchase of their homes. A confidential settlement was obtained in December, 2022.
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Napa County Superior Court Case Number 26-50708
Lead counsel in an ILSA and UCL based rescission action pertaining to 26 closed condominium hotel units at the Westin-Verasa in Napa, California. Status: Confidential settlement reached in 2012.
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San Francisco Superior Court Case Number CGC-11-511958
Lead counsel in an ILSA and UCL based rescission action pertaining to 10 closed condominium units at the Ritz Carlton Residences in San Francisco, California. Status: Confidential settlement reached in 2012.
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Napa County Superior Court Case Number 27-56986
A class action filed and litigated by the five firms appointed Class Counsel herein seeking deposits retained by defendants involving approximately 80 condominium unit purchase and sale agreements at the Westin-Verasa in Napa, California. Status: Settlement class approved and settlement reached in 2014.
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Pitkin County Colorado District Court Case Number 2011 CV168
Co-Lead counsel in an ILSA and common-law based rescission action pertaining to 29 closed condominium units at the Capitol Peak Lodge Condominiums in the Town of Snowmass Village, Colorado. Status: Confidential settlement reached in 2015.
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United States District Court, Central District of California Case Number 14-cv-1051-JLS-JPR
Co-Lead counsel with Tyler Meade and Michael Schrag representing 3 whole-life policy holders and their employer in a RICO, RICO Conspiracy, Fraud, UCL and common law rescission action arising out of the marketing of an illegal tax-shelter by among others, American General Life Insurance Company. Status: Settlement reached in July 2016.
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This case alleged American General defrauded owners of successful small businesses by convincing them to purchase life insurance policies through voluntary employee beneficiary association plans, or VEBAs. American General claimed this was a legitimate financial planning tool with long term tax advantages. What American General did not disclose was that it received word from a trusted tax attorney in 2004 that the VEBAs would have to be restructured to comply with newly tightened IRS regulations. A senior American General executive testified that he warned his superiors that the company had not received confirmation of the restructuring, but the company continued to market the VEBAs and sell its life insurance policies through them for several more years. The American General agent who operated the VEBAs conceded the required restructuring never took place. The U.S. Department of Justice sued that agent, obtaining an injunction preventing any further marketing of this scheme. Dozens of participants were audited by the IRS and forced to pay penalties and back taxes. Asokan went to trial in federal court in Florida in late 2017. American General agreed to a confidential settlement after we presented the evidence summarized above.