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Diamond Resorts Obtains Permanent Injunction In False Advertising Lawsuit Against Companies Renting Out Use Of Vacation Points
/PRNewswire/ -- Diamond Resorts®, a global leader in the hospitality, vacation ownership and entertainment industries, announces the successful resolution of a...
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Diamond has obtained a permanent injunction against Kyle Brown, Martin Brown, and five business entities they own or operate – Exchange Points Club, LLC, Premier Rewards, LLC d/b/a Member Perks, LLC, VMG Resorts LLC, Vacation Management Group, LLC, and Owner Extras LLC.
The case – Diamond v. Exchange Points, et al., which was filed in the United States District Court of Nevada – was brought in response to activities by defendants in which they were accused of:
"We believe that this scheme was designed to deceive our valued members," said Mike Flaskey, CEO, Diamond Resorts®. "We hope this case sends a clear message that Diamond Resorts will do everything in our power to protect our members."
- Engaging in an advertising campaign directed at Diamond Resorts® members that falsely suggested an affiliation with Diamond Resorts® so as to trick members into turning over control of their vacation points.
- Renting out the use of Diamond Resorts® points to their own customers by falsely presenting themselves as authorized distributors of vacation stays at Diamond Resorts properties.
- Charging Diamond Resorts® members a substantial up-front fee for the "service" of renting out their vacation ownership points, even though Defendants have no authorization to do so.