Dave Ramsey and his company have been sued for $150 million over the endorsement of a timeshare exit company. The company is accused of defrauding people into shedding their timeshare shackles. Let’s know all the details of the Ramsey timeshare exit lawsuit.
Ramsey Timeshare Exit Lawsuit Dissolved
Dave Ramsey got the good news before Christmas when a federal judge dismissed a lawsuit in Tennessee. In this lawsuit, the claim was made that the Christian personal finance guru had discriminated against an employee’s religion during the pandemic. The employee had charged that the company had a cut-like work environment.
Why Ramsey Faced The Timeshare Lawsuit?
In the lawsuit, Brad Amos claimed that the founders of Lampo Group, which is the parent company of Ramsey Media’s empire, had misled him before shifting from California to Franklin, Tennessee. He had been working for the company as a video editor. This lawsuit was filed in 2021, and Amos’ attorney argued that Amos had been promised a ‘drama-free, family work environment.’
Amos clashed with the leaders of the company Ramsey Solutions. Dave Ramsey was critical of pandemic-related shutdowns, which required them to come to the company’s offices to work at a time. Amos was the one who challenged the way Ramsey ran his company.
The company made headlines in recent years over Ramsey’s views on Covid-19. The outspoken Christian faith influences the company culture. Controversies were raised over time because the company was one of the best workplaces, which led to at least three lawsuits by former employees.
Discrimination Lawsuit Against Ramsey
A former employee filed a lawsuit alleging she was fired for being gay. This discrimination lawsuit was settled in 2022 and filed by Caitlin O Corner. She told her boss she was pregnant before she married and is still active. The company Ramsey Solutions defended its decision by saying that Corner fires employees who have sex outside of marriage.
Fraud the Timeshare Exit Lawsuit
A group of Ramsey’s radio show listeners filed a class action lawsuit over the show’s endorsement of a fraudulent timeshare exit company. According to the lawsuit, Ramsey paid millions to endorse the Timeshare Exit Team that allegedly collected over $200 million from clients to free them from their timeshare obligations.
A complaint filed in the District Court of Washington in the United States alleges that Ramsey continued to back the company. After that, Washington state regulators fined the company for fraud and blamed the timeshare company’s legal woes on the timeshare industry.
The company was also running a church-based program about finances called ‘Financial Peace University.’ The famous radio show Ramsey Solutions provides recommendations for real estate, mortgage service agencies, and insurance as Ramsey Trusted providers.
One of the Ramsey endorsing teams shares exit team videos. The company was founded by a pair of rain gutter salesmen officially known as Reed Hein LLC. They appear on the show even though the company shut down in 2022, months after agreeing to pay a $2.61 million fine to the state and stop making deceptive claims. One of the federal judges is out.
Ramsey’s company and the Happy Hour Media Group marketed the timeshare exit business; all named were included in the lawsuit. They allege that they violated Washington state’s consumer protection act, which involved a conspiracy and misused consumer fees. Ramsey and his company enriched themselves by endorsing the failed timeshare company.
Read also: Isotonix Lawsuit
Decision About Ramsey’s Lawsuits
United States District Judge Hames Robart dismissed the claim in October. In mid-December, again, the amended complaint was filed, but the most important legal claim was made on Ramsey’s management style on behalf of his religious beliefs.
Amos disagreed with Ramtsey and saw a sign of spiritual weakness in the company. However, Amos claimed that all religious beliefs adhere to COVID-19 guidelines, and Ramsey promoted a faith-over-fear response to the pandemic. Amos sued in state and federal court, claiming that Ramsey misled him about the company culture.
Furthermore, Judge Eli Richardson ruled that Amos’ lawyers had failed to show that he had been misled. They represent the company as drama-free or family-friendly, a statement of opinion, not a promise. In addition, he gave little credence to the idea that Amos was misled when Ramsey Solutions leaders denied the company was cut like
The judge also ruled that the plaintiff failed to prove the dispute with Ramsey’s leadership over the Covid-19 pandemic. On the other side, the attorney of Amos Jonathan Street said, ‘We respect the court’s decision, but we respectfully disagree with the ruling, so we plan on appealing the decision on the 6th circuit.
In this way, Ramsey cut like lawsuits dismissed But the plaintiffs are ready to forward these complaints.