According to a press release dated February 1, 2008, the lawsuit was filed on behalf of all persons who purchased one or more of the 239 hotel condominium units (the "Hotel Units") in The Resort at Singer Island (the "Singer Island Resort"). The Singer Island Resort is located in Palm Beach, Florida.
Specifically, the complaint alleges that the Defendants violated section 12(a)(1) of the Securities Act of 1933, 15 U.S.C. § 77(l)(a)(1), by failing to register with the Securities and Exchange Commission (the "SEC") the public offering of the Hotel Units. The complaint also alleges that defendant WCI violated section 15 of the Securities Act, 15 U.S.C. § 77o, by controlling the operations of its wholly owned subsidiary, defendant Singer Island Resort, in offering the Hotel Units for sale without registering them with the SEC. The plaintiffs seek to rescind their acquisition of the Hotel Units and/or rescissory or other damages in an amount to be proven at trial.
On March 28, 2008, a motion to consolidate cases, to appoint lead plaintiffs and counsels was filed. The court denied the motion for consolidation on May 28, 2008. On August 6, 2008 an entry in the docket was made regarding the bankruptcy filing of WCI Communities, Inc. On August 20, 2008, Judge Daniel T. K. Hurley signed the Order Staying and Administratively Closing Action due to the defendant's suggestion of bankruptcy. According to the Order, the matter is stayed, administratively closed, and the case shall be re-opened upon motion by either party, or upon the court's own motion.