Attorney General Michelle Henry has initiated legal action against Eagle Rock Resort Co., LLC, and its associated entities, alleging the company used inflated property values to sell undeveloped land. The lawsuit contends that Eagle Rock misled consumers about the value of lots at its Hazelton resort, using deceptive comparisons and claims about potential appreciation.
The complaint seeks financial restitution for those who purchased these lots under false pretenses and aims to halt Eagle Rock's alleged misrepresentations. "Eagle Rock allegedly led consumers to believe they were making sound real estate investments, when in reality, consumers bought overpriced properties with very little resale value," said Attorney General Henry. She added that the lawsuit intends to secure compensation for affected buyers and prevent further sales based on misleading information.
Consumers who suspect they have been impacted by Eagle Rock's practices are encouraged to contact the Bureau of Consumer Protection through various channels including phone and email.
The lawsuit accuses Eagle Rock of employing misleading tactics to sell lots at prices far exceeding their resale value unless developed with housing. Despite charging between $30,000 and $100,000 per lot, resale values reportedly range from $5,000 to $20,000.
Sales scripts from Eagle Rock claimed significant annual price increases: “Here you can make an investment and build equity in something that you can also enjoy… Our lot prices have gone up an average of 15% per year over the past 5 years, and over 10% just within the last year.”
A consumer complaint described a decade-long belief in property appreciation due to online listings showing average prices of $65,000. However, attempts to sell revealed a market where lots sold for much less. Another buyer recounted high-pressure sales tactics promising future appreciation sufficient to cover college costs.
The Attorney General’s Office asserts that Eagle Rock's practices violate Pennsylvania’s Unfair Practices and Consumer Protection Law as well as the federal Consumer Financial Protection Act. The lawsuit seeks restitution for customers deceived by these representations and requests penalties against Eagle Rock for violating consumer protection laws.
Deputy Attorney General Pat Gavin filed this complaint in the United States District Court for the Middle District of Pennsylvania.