On December 8, 2011, the law firms of Blumenthal, Nordrehaug & Bhowmik and Gerard & Associates filed documents and video testimony alleging that MGM defrauded 464 investors into purchasing units in the MGM Signature Suites at the MGM Grand in Las Vegas. Abraham v. Turnberry/MGM, Case No. 2:11-cv-01007 is pending in the United States District Court for the District of Nevada along with Sussex v. Turnberry/MGM, Case No. 2:08-CV-0073.
These lawsuits were filed against MGM on behalf of investors in the Signature Suites at MGM Grand who allege that MGM induced investors to purchase units in the MGM Signature Suites by falsely representing that the investors would receive 60% of the revenue from renting out their units through the MGM Signature rental program when, in fact, these investors only received 30% of revenues. The sworn video deposition testimony of former salesman Jeffrey Schoor of the MGM Signature corroborates these allegations.
According to the complaint, "in order to avoid disclosing the true facts that would have exposed the negative aspects of the investment, MGM intentionally and knowingly disguised their sale of these investment contract Securities as a simple real estate transaction, for the purpose of avoiding both state and federal laws and regulations that require (a) honest and complete disclosure to investors; (b) just and honorable conduct by those who sell investments; (c) registration of the securities being sold and the incumbent disclosure involved therewith; as well as (d) the registration and qualification of the entities and individuals selling investment contract Securities." The arbitration provision of these contracts has also denied these investors their fundamental right to a public jury trial in court and class action status.
For more information, visit the MGM Signature lawsuit website or call (866) 811-2122.
The lawyers at Blumenthal, Nordrehaug & Bhowmik focus on representing employees, consumers and investors on a contingency fee basis in actions against public companies for unlawful, unfair and deceptive business practices and policies.
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Blumenthal, Nordrehaug & Bhowmik
Norman B. Blumenthal, 800-568-8020