Opinion ID: 762144
Heading Depth: 3
Heading Rank: 3

Heading: 1988: Mounting problems culminate in bankruptcy

Text: 17 In March 1988, the Ohio Attorney General (OAG) brought separate lawsuits that alleged that the LiVorio-Sabatini Group was using deceptive sales practices in violation of state law, such as bait advertising and high-pressure sales tactics. The lawsuits were the subject of newspaper articles that Plaintiffs have acknowledged reading. In addition, numerous members of Plaintiffs' class sought legal counsel and/or initiated their own independent civil legal actions against the Campgrounds, some raising claims of civil RICO violations in August of 1988. In addition, some class representatives complained to the OAG's office about misrepresentations and the Campgrounds' sales practices. On July 8, 1988, the Campgrounds settled these lawsuits by agreeing to reform their sales practices, including agreements to ensure the actual delivery of free prizes, the resale of interests of certain purchasers, the right to rescind to others and a three-day cancellation period. 18 On October 5, 1988, Ponderosa Park and The Landing each filed for bankruptcy under Chapter 11 of the Bankruptcy Code. In November 1988, the bankruptcy court appointed a trustee at the banks' request. The trustee began operating the Campgrounds on an interim basis with funding provided by the banks. 19