The Westgate Resorts lawsuit history is not a single case but a long series of them: consumer class actions over high-pressure timeshare sales, a Federal Trade Commission penalty for Do Not Call violations, a Consumer Financial Protection Bureau investigation, a landmark federal appeals ruling on lending to active-duty service members, employment suits from salespeople, and a defamation fight the Orlando-based company brought and lost against a documentary filmmaker. Some produced significant rulings against Westgate. Others were dismissed, settled quietly, or remain active as of 2026.
Buyer Claims Over High-Pressure Timeshare Sales
The largest consumer suit was Hambacker v. Westgate Resorts, Ltd., filed in June 2020 in the Eastern District of Missouri. More than 100 named plaintiffs, representing hundreds of timeshare buyers, alleged Westgate used a “high-pressure scheme” to sell vacation interests while hiding legally required disclosures.1ClassAction.org. Hambacker et al. v. Westgate Resorts, Ltd., L.P. et al.
The complaint described specific tactics. Buyers said closing officers used “secret pockets” in closing folios to physically conceal documents informing purchasers of their statutory right to cancel. Sales agents were allegedly poorly trained and, at times, encouraged to lie about what buyers were getting. The suit also targeted Westgate’s “floating use” reservation system, claiming it was so overbooked that owners could not secure time at their properties even a year in advance.2Top Class Actions. Westgate Resorts Class Action Alleges High-Pressure Sales Tactics According to the plaintiffs, the business model depended on intentionally overselling to maximize maintenance-fee revenue while renting unsold inventory to the public.1ClassAction.org. Hambacker et al. v. Westgate Resorts, Ltd., L.P. et al.
Plaintiffs sought more than $5 million in damages. The case did not reach the merits: it was dismissed without prejudice in November 2020 after the plaintiffs themselves moved to dismiss.3ClassAction.org. Westgate Resorts, Ltd. Hit With Class Action Lawsuit Filed by Hundreds of Timeshare Buyers
Federal Enforcement: FTC Penalty and CFPB Investigation
In January 2009, the FTC sued Central Florida Investments, Westgate Resorts, and CFI Sales & Marketing in the Middle District of Florida, alleging telemarketing calls to numbers on the National Do Not Call Registry. The government said the companies bought phone numbers through a website, Brandarama.com, that harvested data with deceptive pre-checked online forms.4Federal Trade Commission. Complaint for Civil Penalties, Permanent Injunction, and Other Relief
Two weeks later, the court entered a stipulated final order. Westgate paid $900,000 in civil penalties and was permanently barred from future violations of the Telemarketing Sales Rule. The settlement did not include an admission of wrongdoing.5Federal Trade Commission. FTC Cracks Down on Do Not Call Violators
In September 2015, the Consumer Financial Protection Bureau issued a civil investigative demand, opening a probe into whether Westgate salespeople had violated the Fair Debt Collection Practices Act, the Electronic Funds Transfer Act, and the Fair Credit Billing Act, with a particular focus on misleading statements about financing.6Orlando Sentinel. Federal Agency Probes Westgate Resorts Selling Tactics Westgate petitioned to set the demand aside, arguing the CFPB lacked constitutional authority and that its powers did not reach non-financial aspects of timeshare operations.7Consumer Financial Protection Bureau. Westgate Resorts, Ltd.’s Petition to Modify or Set Aside Civil Investigative Demand The Bureau denied the petition in March 2016 and ordered Westgate to produce withheld consumer complaints and employee identities within 21 days.8Consumer Financial Protection Bureau. Decision and Order on Petition by Westgate Resorts, Ltd. The available record does not show whether the investigation produced a formal enforcement action.
Military Lending Act: The Steines Ruling
The most legally consequential case against Westgate involved active-duty soldier Adam Steines and his wife. In Steines v. Westgate Palace, L.L.C., they alleged their timeshare loan lacked mandatory Military Lending Act disclosures, misstated the true interest rate (the note listed 17.99% APR while they calculated a 19.124% Military APR), and included an unlawful mandatory arbitration clause.9U.S. Court of Appeals for the Eleventh Circuit. Steines v. Westgate Palace, L.L.C., No. 22-14211
Westgate argued the case belonged in arbitration and that its timeshare loan was a “residential mortgage” exempt from the MLA. On September 5, 2024, the Eleventh Circuit rejected both positions. The court held that the MLA “unambiguously” displaces the Federal Arbitration Act, making arbitration agreements unenforceable against covered service members in consumer credit disputes. It also found a timeshare interest in a building with over 200 hotel-like units was “far more like a hotel and far less like a home,” and therefore not a residential mortgage.9U.S. Court of Appeals for the Eleventh Circuit. Steines v. Westgate Palace, L.L.C., No. 22-14211
The ruling also established that even where a contract delegates arbitrability questions to an arbitrator, a court must decide the threshold question of whether Congress has overridden the FAA. The appeal was dismissed and the case sent back to the district court.1011th Circuit Business Blog. Whether Statute Overrides the Federal Arbitration Act Must Be Decided by a Court, Not an Arbitrator The docket shows the case was terminated on June 9, 2026; the specific terms of resolution are not detailed in the available record.11CourtListener. Steines v. Westgate Palace, LLC
Active TCPA Class Action
McMillan v. Westgate, a Telephone Consumer Protection Act class action in the Central District of California, is currently open. On February 5, 2026, the court refused to enforce an arbitration clause buried in Westgate’s website terms, finding the pop-up notice inadequate. The judge pointed to several design failures: a font “considerably smaller” than surrounding page elements, layout that pulled the user’s eye away from the notice, disclosure text buried alongside unrelated notices about text messaging and privacy, and a hyperlink marked only by an underscore with no contrasting color.12TCPA World. Court Holds Westgate Resorts Website Popup Not Sufficient to Give Consumers Reasonable Notice of Terms
Employment Lawsuits by Salespeople
Several suits have come from Westgate’s own workforce.
Withheld Commissions in Myrtle Beach
In July 2024, a former commission-only salesperson at the Westgate Oceanfront Resort in Myrtle Beach filed Helms v. Westgate Resorts, Inc. in the District of South Carolina. The complaint alleged Westgate required salespeople to maintain “reserve funds” of roughly $3,000 to $4,000, withheld from earned commissions to cover potential charge-backs, and then refused to release the money after the charge-back period expired.13ClassAction.org. Timeshare Lawsuit Alleges Westgate Resorts Withholds Reserved Sales Commissions
Westgate won this one. After an initial dismissal without prejudice in June 2025, the plaintiff filed a second amended complaint. On March 19, 2026, Judge Joseph Dawson III dismissed with prejudice, ruled further amendment would be futile, and closed the case.14Justia. Helms v. Westgate Resorts Inc. et al.
Overtime Under the FLSA
In October 2019, a former sales representative filed Fredrick v. Central Florida Investments in the Eastern District of Tennessee. The collective action alleged Westgate misclassified sales representatives as independent contractors and paid them on a “draw against commissions” basis without overtime, violating the Fair Labor Standards Act.15Nichols Kaster. Timeshare Sales Rep Files Collective Action Lawsuit Court records show the case was still active in early 2022, but the final resolution is not reflected in the available research.16GovInfo. Fredrick v. Central Florida Investments, Inc.
Race-Based Customer Assignment in Las Vegas
Former salesman Charles Layne sued in January 2015, alleging Westgate ran “an elaborate and detailed system of unlawful discrimination” at its Las Vegas properties by matching salespeople with prospective customers based on race, gender, or sexual orientation. Black, white, and Latino salespeople were allegedly restricted to pitching customers of their own race. The complaint identified Richard Siegel, vice president of sales and son of CEO David Siegel, as the architect. The EEOC’s Las Vegas office issued a determination letter finding reasonable cause to believe Westgate had subjected Layne to different terms of employment based on race.17Las Vegas Review-Journal. Former Employee Alleges Unlawful Discrimination at Westgate Resorts
Suits Westgate Has Brought Against Timeshare Exit Companies
The company has also been the plaintiff. In Westgate Resorts, Ltd. v. Sussman, filed in the Middle District of Florida, Westgate sued California attorney Mitchell Reed Sussman over an alleged timeshare exit scheme that induced owners to stop making payments. The court granted summary judgment for Westgate in 2019, finding Sussman’s letters telling owners they had “successfully exited” were “objectively deceptive” and that “stopping payments does not effectuate a timeshare exit.”18Diamond Resorts Exit. Legal Cases
Westgate has also litigated with Wesley Financial Group, a Tennessee-based exit firm. Westgate sued in Nashville federal court around 2020, alleging a fraudulent cancellation scheme.19Yahoo Finance. Timeshare Exit Company Sues Westgate Wesley countersued in 2023 in the Middle District of Florida, accusing Westgate of using federal advertising and antitrust violations to eliminate competition for exit services. In August 2024, the Florida court ruled against Wesley Financial, finding that Westgate’s own exit program for “qualified” owners was not misleading even if broadly unavailable.20Tushnet.com. Timeshare Company’s Own Exit Program
The Queen of Versailles Defamation Loss
In January 2012, David Siegel and Westgate Resorts sued documentary filmmaker Lauren Greenfield and the Sundance Institute over the marketing of The Queen of Versailles, which followed the Siegel family during the 2008 financial crisis. Siegel objected to Sundance’s press materials describing his “time-share empire” as having “collapsed” and framing the film as a “rags-to-riches-to-rags story.”21The New York Times. Documentary Footage Raises Questions About Lawsuit
The case went to arbitration before the Independent Film and Television Alliance. In March 2014, arbitrator Roy Rifkin ruled for Greenfield, finding nothing in the documentary was false and that Westgate had failed to show the malice required for a defamation claim by a public figure. He ordered Westgate to pay $750,000 in Greenfield’s attorney’s fees.22Hollywood Reporter. Queen of Versailles Filmmaker Beats Westgate