Bluegreen Vacations and Bankruptcy Trustee for Former Timeshare Exit Company American Resort Management Group Announce Settlement as a Victory for Timeshare Owners
BOCA RATON, Fla.--(BUSINESS WIRE)-- Bluegreen Vacations Corporation (NYSE: BXG) ("Bluegreen" or the “Company"), a leader in the vacation ownership industry, previously sued American Resort Management Group (ARMG), its principals and ARMG’s law firm in a federal court in Orlando. In its lawsuit, Bluegreen alleged violations of the Lanham Act, tortious interference with contract, civil conspiracy and violations of the Florida Deceptive and Unfair Trade Practices Act. While the lawsuit was pending, ARMG and its affiliated law firm each filed for bankruptcy as a result of significant and ongoing financial distress.
The bankruptcy court appointed a trustee for ARMG after finding its business was “dubious at best” and its principals appeared to be “engaged in substantial fraud and dishonesty.” Bluegreen and the trustee ultimately entered into a court-approved settlement, which allowed 100% of Bluegreen’s claims against ARMG in an amount in excess of one million dollars.
Bluegreen and the Trustee consider this matter a victory for the timeshare owners. In this regard, Bluegreen has agreed to work with the timeshare owners defrauded by ARMG to take back or process transfers of their timeshare interests. Bluegreen has also agreed to subordinate its claims against ARMG to the claims against ARMG of the timeshare owners, who have sought a refund of the fees paid to ARMG.
“We are pleased with the court’s decision to approve the settlement in this case. The misconduct of the principals of ARMG were deceptive and injurious to Bluegreen’s timeshare owners. Bluegreen remains committed to protecting its owners from being victimized by unscrupulous exit companies,” said Jorge de la Osa, Bluegreen’s Chief Legal and Compliance Officer.
About Bluegreen Vacations Corporation: Bluegreen Vacations Corporation (NYSE: BXG) is a leading vacation ownership company that markets and sells vacation ownership interests and manages resorts in popular leisure and urban destinations. The Bluegreen Vacation Club is a flexible, points-based, deeded vacation ownership plan with 68 Club and Club Associate Resorts and access to nearly 11,300 other hotels and resorts through partnerships and exchange networks. Bluegreen Vacations also offers a portfolio of comprehensive, fee-based resort management, financial, and sales and marketing services to, or on behalf of, third parties. Bluegreen Vacations Corporation is approximately 93% owned by Bluegreen Vacations Holding Corporation (NYSE: BVH) (OTCQX: BVHBB) (formerly BBX Capital Corporation), a Florida-based holding company. For further information about Bluegreen Vacations Corporation, please visit www.BluegreenVacations.com.
About Bluegreen Vacations Holding Corporation: Bluegreen Vacations Holding Corporation (NYSE: BVH) (OTCQX: BVHBB) (formerly BBX Capital Corporation), is a Florida-based holding company whose sole investment is its approximate 93% ownership interest of Bluegreen Vacations Corporation (NYSE: BXG). For further information, please visit www.BVHcorp.com.
Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are based on current expectations of management and can be identified by the use of words such as “believe”, “may”, “could”, “should”, “plans”, “anticipates”, “intends”, “estimates”, “expects”, and other words and phrases of similar impact. Forward-looking statements involve risks, uncertainties, and other factors, many of which are beyond our control, that may cause actual results or performance to differ from those set forth or implied in the forward-looking statements. These risks and uncertainties include, without limitation, risks relating to the success of efforts to address the illegal actions of timeshare exit firms. For a description of other risks and uncertainties, please see the “Risk Factors” section of Bluegreen Vacations’ Annual Report on Form 10-K for the year ended December 31, 2019 and the Company’s Quarterly Report on Form 10-Q for the three months ended September 30, 2020. Bluegreen cautions that the foregoing factors are not exclusive. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. Bluegreen does not undertake, and specifically disclaims any obligation, to update or supplement any forward-looking statements.
Bluegreen Vacations Corporation Contact:
Investor Relations: Leo Hinkley, Managing Director, Investor Relations Officer
Telephone: 954-940-5336 Email: Leo.Hinkley@BluegreenVacations.com
Source: Bluegreen Vacations Corporation
Released December 10, 2020