More bad news for the beleaguered Cosmopolitan project
in Las Vegas
. Earlier this year we learned that some buyers in the project would be given refunds. Now a new lawsuit filed last week takes issue with the decision of the developers to turn the Cosmopolitan into a hotel-only development rather than the condo-hotel project it originally was. The suit was filed on behalf of three individuals who placed deposits towards condominiums
at the Cosmopolitan of Las Vegas
and alleges that Deutsche Bank, Nevada Property
1 LLC, Nevada Voteco, LLC, 3700 Associates, LLC, and KO Realty
Group knowingly committed fraud
and conversion, concealing and suppressing facts in order to steal escrow deposits.
and their partners in this venture have been caught red-handed, capitalizing on the recession
to steal nearly $100 million in escrow deposits from individuals who bought into the Cosmopolitan of Las Vegas," said Dan Park, lead counsel for the Plaintiffs in a statement. "It's no secret that they have no intention of building the condominiums, as promised, and are playing with people's livelihoods instead of returning money
that rightfully belongs to them."
The Cosmopolitan of Las Vegas is set to open in December. The project has not recorded a subdivision map with Clark County showing any condominium units. he $3.9 billion project will include nearly 3,000 rooms, a casino, spa, nightclub and retail
space. The Casino City Times reports
that the plaintiffs in the newest lawsuit paid 20 percent deposits on units and have not agreed to the times of other settlements. Deutsche Bank bought the project for $1 billion when it was half-finished after its original developer and owner entered foreclosure proceedings.