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Re: Manhattan Club Lawsuit (by Beth C.):

Unfortunately I can't provide a link to the settlement, but I have read the Assurance of Discontinuance settlement of the OAG's lawsuit. In it, the TMC "Sponsors" have admitted to violations of the Martin Act from 2011-2014 as follows: 1) the Sponsors' sales staff failed to provide the offering plans to purchasers, 2) The Sponsors' sale staff made misrepresentations to purchasers, 3) The Sponsors' reservations agents failed to abide by the offering Plans for a "first come first served basis", and 4) the Offering Plan budgets underestimated bad debt expenses. The Sponsors have agreed to sell and give up their interest in TMC and pay back $6.5M over several years. The first payment ($3.25M) will be divided to timeshare owners who were eligible to make a reservation in 2011 through 2014 and were current on their payments and did not use all of their allotted nights. The second payment ($1.625M by 1 year anniversary) and third payment ($1.625M by 2nd year anniversary) are to be divided among owners at the time of the second payment and third payment to owners who were current "in the same proportion as such owner's annual maintenance fees in such calendar year are to the total maintenance fees charged to all owners in that calendar year."