Groupwise sold its timeshare resale services to consumers nationwide. In exchange for a fee ranging from approximately $3,500 to $6,300, Groupwise agreed to assume the consumers’ financial obligations relating to their timeshares until the defendants located buyers for the timeshares and finalized sales. However, Groupwise allegedly failed to honor the terms of these agreements, leaving consumers burdened with the ownership of their timeshares and all of the associated costs and fees. The lawsuit also alleges that the defendants failed to escrow the consumers’ payments, despite requirements of certain state laws, including Florida and South Carolina.
Over time, the defendants increasingly struggled to locate buyers for the timeshares under contract and could no longer keep up with the financial responsibilities. Groupwise ceased all operations in September of 2018, leaving at least 930 consumers nationwide with incomplete timeshare transfer transactions and no financial relief. According to the Complaint, consumer losses are valued at $2.9 million. The Commonwealth’s complaint seeks consumer restitution, civil penalties and costs. In addition, the Commonwealth seeks to permanently enjoin Harkins and McGuire from engaging in the timeshare industry in Pennsylvania.
