Another Injunction Lawsuit Filed Against Deutsche Bank and the Cosmopolitan of Las Vegas

LAS VEGAS--(BUSINESS WIRE)--When the Cosmopolitan Resort and Casino (now named the Cosmopolitan of Las Vegas) was announced in 2005, it was billed as the ultimate in luxury living to the 2,000 potential condominium owners. Owners would enjoy exclusive amenities, segregated from hotel guests, including separate elevators, pools and parking that would only be accessible to residential condominium owners. Six years later, hundreds of these purchasers are embroiled in lawsuits against Deutsche Bank and its partners to either be given the property that they purchased, or have their earnest money deposits returned.

“The Defendants in this case have stated that they will be recording their new subdivision map at a date of their choosing, even though it will most likely be approved for recordation in August of 2010”

Yesterday, in the District Court of Clark County, Nevada, another complaint for preliminary and permanent injunction was filed by attorney Sonia J. Taylor of Lurie & Park on behalf of three of these purchasers. Specifically the injunction is requesting that the Cosmopolitan of Las Vegas record a final subdivision map with Clark County and produce all subdivision maps of the property that have been filed in the past with Clark County or with any governmental agency. Nevada law requires recordation of these maps prior to sale of any condominium units or its grand opening in December 2010.

The complaint states that in September 2008, the Defendants replaced the original subdivision map that called for 2,000 condominiums with a new map that did not call for any residential units. This map was never disclosed and is in violation of the Plaintiffs' Purchase Agreements. In addition, in June 2010, the Defendants submitted another subdivision map that called for approximately 300 residential units interspersed among the Cosmopolitan’s 3,000 hotel rooms. This new map deviates materially and adversely from the original map that the Plaintiffs relied upon with they signed their Purchase Agreements. If the Defendants elect to record these maps, they will be in breach of their original agreement.

“The Defendants in this case have stated that they will be recording their new subdivision map at a date of their choosing, even though it will most likely be approved for recordation in August of 2010,” said attorney Sonia Taylor. “We believe that the Defendants are trying to manipulate our clients into forfeiting a sizeable portion of their deposits, as other buyers have been forced to do under financial duress. If they can avoid recording this final map for as long as possible, they can effectively prevent our clients from exercising their contractual rights to exercise their option under Paragraph 17.3 of the Purchase Agreement to receive a full refund of their deposits because the subdivision map has been altered.”

To date, the Defendants will not confirm when or which map they will finally record, leaving the Plaintiffs' only recourse to take this action.

The complaint was filed July 28, 2010, in the District Court for Clark County, Nevada.