Complaint Review: Wyndham Vacation - Parsippany New Jersey

Over half of Wyndham's revenue is from their dirty timeshare division, and over 70% of those sales are upgrades to existing owners.  Wyndham abuses its own members through manipulation and coercion to buy more and more points, by falsifying credit applications, by intimidating the elderly, by threatening members with credit and financial destruction, and by fraudulent programs such as Pathways.  The Officer s and Directos know what is happening and should be held responsible.  The following is a reprint from a lawsuit recently filed against Wyndham and in the public record, which sums up this company's aims and purposes (this lawsuit is also the subject of several news shows):

1. "The majority of Wyndham’s VOI sales are upgrade sales made to existing Wyndham VOI owners.  Wyndham’s 2013 Annual Report (10k) filed this year states that, “Wyndham Vacation Ownership employs a variety of marketing channels to encourage prospective owners of VOIs to tour Wyndham Vacation Ownership properties and attend sales presentations at off-site sales offices. Our resort-based sales centers also enable us to actively solicit upgrade sales to existing owners of VOIs while such owners vacation at our resort properties. We also operate a telesales program designed to market upgrade sales to existing owners of our products. Sales of VOIs relating to upgrades represented approximately 70%, 70%, and 68% of our net sales of VOIs during 2013, 2012 and 2011, respectively.” Wyndham Worldwide Corporation’s 2013 Annual Report, p. 21.
2. Wyndham timeshare owners are coerced, forced, and/or required to attend “owner update” or other meetings that are intended for no purpose other than to manipulate and pressure the owners to buy additional timeshare points.
3. Approximately seventy percent (70%) of all timeshare sales by the Defendants are to owners that have previously purchased a Wyndham timeshare.  See Wyndham Worldwide Corporation’s 2013 Annual Report, p. 21.
4. During the past three years, Wyndham has generated total revenues of $5,009,000,000 in 2013, $4,534,000,000 in 2012, and $4,254,000,000 in 2011.
5. During the past three years, Wyndham has generated total earnings of $432,000,000 in 2013, $400,000,000 in 2012, and $417,000,000 in 2011.
6. Wyndham is by far the largest timeshare company in the world, with a market capitalization of 9.46 Billion, and experiences the highest earnings growth in its sector with quarterly earnings growth of 233.30%.
7. Wyndham’s publicly traded stock has experienced unprecedented growth since 2009, rising from under $3.00 per share to approximately $75.00 per share, constituting a 2,375.50% price increase.
8. This extraordinary price inflation is widely attributed to the phenomenal growth of Wyndham’s timeshare sales.
9. Wyndham’s timeshare sales make up over fifty percent (50%) of Wyndham’s total sales of all of its divisions, which has experienced an above industry growth of over 10-12% year over year.
10. The unprecedented and sustained growth of Wyndham’s timeshare sales has been attributed to timeshare “upgrades,” defined as timeshare sales to existing Wyndham timeshare owners.
11. Approximately 70% of all Wyndham timeshare sales are upgrades to existing members.
12. Since July 2012, Wyndham’s top officers and directors (insiders) have sold 4,780,825 shares of Wyndham stock for over $153,489,424.
13. During the month of August 2014 alone, Franz Hanning, the Chief Executive Officer of WVO, sold 58,160 shares of Wyndham Stock for a total of $4,652,800.
14. During the month of August 2014 alone, Stephen Holmes, the Chief Executive Officer of WWO, sold or otherwise exercised 770,777 shares of Wyndham Stock for a total of $22,716,491.
15. Such stock was sold at a time when numerous Wyndham timeshare owners were either being foreclosed on by Wyndham and/or were being forced into bankruptcy by Wyndham.
16. During the time period in question in this Complaint, Wyndham’s officers and directors were making high salaries and over One Hundred & Fifty Million Dollars ($150,000,000) of capital gains on Wyndham Stock.
17. During the same time period in question, the Plaintiff was placed deeply in debt by Wyndham.
18. During the same time period in question, the Plaintiff, retired and on very limited retirement benefits, was put in legal jeopardy of losing her home, remaining retirement, and personal property from the debt into which Wyndham forced the Plaintiff.
19. Of all sales of Wyndham stock over the last year, Wyndham insider sales constituted approximately 18% of all publicly sold sales, nearly four times the industry average.
20. The Defendants are currently under investigation with the U.S. Securities & Exchange Commission as well as other governmental agencies for alleged illegal conduct similar to which has been plead in this complaint. 
21. Unbeknownst to the Plaintiff, Wyndham sold the Plaintiff timeshare points at hugely inflated prices.
22. Unbeknownst to the Plaintiff, Wyndham timeshare points are an illiquid asset with no aftermarket, making it impossible for the Plaintiff or other owners to resell their Wyndham timeshares. 
23. Unbeknownst to the Plaintiff, had the Plaintiff purchased Wyndham publicly traded stock instead of Wyndham timeshare points (when she purchased Wyndham timeshare points), she would have a liquid and marketable asset with a fair market value of well in excess of two million dollars.
24. Plaintiff, like many Wyndham timeshare owners, attempted to sell her Wyndham timeshares on numerous occasions but found there was no market to purchase her Wyndham timeshare points.
25. The Plaintiff owns Three Million Two Hundred and Sixty Six Thousand (3,266,000) Wyndham related timeshare or vacation club membership points, having been forced into multiple upgrades over the last few years alone.   
26. Plaintiff, with the knowledge, expectation and encouragement from Wyndham, has traded in her Wyndham timeshare properties and/or points from time to time in exchange for other Wyndham timeshare properties, points and/or benefits.  
27. As set forth more particularly below, after encouraging and inducing Plaintiff to purchase these timeshare properties and/or timeshare points, Wyndham has and continues to systematically eliminate benefits that directly impact Plaintiff’s use to her detriment.
28. As a result of the numerous timeshare upgrades into which the Plaintiff was fraudulently induced by Wyndham, the Plaintiff has paid Wyndham at least Four Hundred and Twenty Five Thousand Dollars ($425,000)."

This Plaintiff has been the subject of several news reports:

http://www.jrn.com/newschannel5/news/newschannel-5-investigates/consumer-alert/Elderly-Claim-Timeshare-Company-Scammed-Them-282987871.html

http://www.newschannel9.com/news/top-stories/stories/timeshare-investigation-bridgeport-woman-says-company-cheated-her-13975.shtml

To the Wyndham Board of Direcctors - its up to YOU to pressure Holmes and Hanning to stop these fraudulent slaes activities and have open disclosure to your members during all of the slaes and customer service processes.  If you dont, you are equally responsible!