CHICAGO– LAWFUEL – The Law Jobs & Law Newswire –Todd & Weld LLP and Lite DePalma Greenberg & Rivas, LLC hereby give notice that a class action lawsuit was filed in the Northern District of Illinois, on behalf of all persons who purchased club memberships in “Distinctive Retreats by Abercrombie & Kent, Inc.” during the period of time Abercrombie & Kent, Inc. licensed its name to Tanner & Haley, seeking to pursue remedies for violation of common law causes of action, causes of action arising from violations of applicable consumer fraud legislative protections and under the Securities Exchange Act of 1934 (the “Exchange Act”). The action was originally filed on November 3, 2006 in the United States District Court for the District of New Jersey, transferred to the Northern District of Illinois and docketed on April 30, 2007, and an amended complaint was filed on May 11, 2007, pursuant to court order. If you would like to discuss this action, receive a copy of the amended complaint, or have any questions about this notice or your rights, please contact attorney Kevin T. Peters, Esq. via e-mail at [email protected] or via telephone at (617) 720-2626.
Any member of the purported class may move the court to serve as lead plaintiff through counsel of his or her choice or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. To serve as lead plaintiff, you must meet certain legal requirements. If you wish to serve as lead plaintiff, you must move the court no later than July 16, 2007 for appointment. Your ability to share in any recovery is not affected by the decision whether to serve as lead plaintiff. We would be happy to answer any questions you may have about your options.
The action, Case No. 07-2284, is pending in the United States District Court for the Northern District of Illinois against defendants Abercrombie & Kent, Inc., Geoffrey Kent, Andrew Harper, Andrew Harper Travel, Inc. and John Doe a/k/a Andrew Harper for violation of common law fraud, negligent misrepresentation, consumer fraud and breach of guarantee. In addition to common law causes of action and causes of action arising from violations of applicable consumer fraud legislative protections, this is a federal Class action brought under the Securities Exchange Act of 1934 on behalf of persons who purchased securities, that is bonds, representing membership in a luxury destination club for which, upon information and belief, they each paid $390,000 or more and the amount paid was less than the face value of the bonds. The Complaint further alleges that said bonds were purchased in reliance upon a mix of material non-disclosures of facts and materially false and misleading statements which caused plaintiff and the plaintiff Class to erroneously believe that defendant Abercrombie & Kent, Inc. was the owner and operator of the club, and the issuer and backer of both the bonds and of the guarantee that the face value of the bonds, also known as the “membership deposit” amount, would be one hundred percent refundable.
The Complaint further alleges that Abercrombie & Kent, Inc., after enticing hundreds of people to become members in the club, announced that it was no longer permitting its name to be used for the project, notwithstanding the aggressive marketing campaign that had featured Abercrombie & Kent’s hallmark name front and center on all approved marketing materials, offering documents and the membership agreement. The fact that it was simply lending or licensing its name, if true, was not disclosed in any of the materials given to the prospective club members.
Ultimately, Tanner & Haley disclosed that it was the owner of the club, and stated that Abercrombie & Kent, Inc. would no longer license its name to Tanner & Haley. On July 24, 2006, Tanner & Haley filed for protection under Chapter 11 of the United States Bankruptcy Code. The bonds are thus illiquid and non-refundable by Tanner & Haley at present and the Class members are general unsecured creditors of Tanner & Haley in that bankruptcy. Given, inter alia, the unauthorized change in the debt to equity ratio and other matters disclosed to date in the pending bankruptcy proceedings, the Class stands to lose most, if not all, of the value of their securities. In fact, the assets of the Club have been sold, pursuant to an order of the bankruptcy court approving same but for an amount leaving very little if anything to pay the claims of the unsecured creditors.
The plaintiffs seek to recover damages on behalf of all persons who purchased club memberships in “Distinctive Retreats by Abercrombie & Kent, Inc.” during the period of time Abercrombie & Kent, Inc. licensed its name to Tanner & Haley and suffered a loss as a result. The plaintiffs are represented by the law firms of Todd & Weld LLP and Lite DePalma Greenberg & Rivas, LLC, each of which prosecutes class actions in both state and federal courts throughout the country.