San Diego – October 8, 2021 – Cooley represented Accelerated Assets, an investment firm that is focused on the acquisition, development, sale and financing of timeshare assets, and two other entities, SS Purchco and Pahrump Valley Real Estate Co. (PVRE), in a securities enforcement action brought by the California Department of Financial Protection and Innovation that has received significant media attention, in which all claims against Cooley's clients were dismissed with prejudice. Partner Michael C. Tu led the Cooley team representing Accelerated Assets, SS Purchco and PVRE.
The lawsuit by the state of California accused Accelerated Assets, SS Purchco and PVRE of aiding-and-abetting securities violations allegedly committed by the developer of the Silver Saddle Ranch & Club in the Mojave Desert and certain executives and employees of Silver Saddle Ranch. Those aiding-and-abetting claims were based on the purchase of notes receivables by SS Purchco relating to the Silver Saddle Ranch development, and followed an investigation conducted by the state.
Over the course of the litigation lasting more than a year, it was established that there was no factual or legal basis for the claims against Accelerated Assets, SS Purchco and PVRE. Aggressive and unwarranted attempts by the state to obtain contempt findings against the clients and to oppose the clients' pursuit of cross-claims were all defeated in court by the Cooley team. Pursuant to a joint stipulation that was approved by the San Diego County Superior Court, the state voluntarily agreed to dismiss all claims with prejudice against the clients without any payment, and the court dissolved the preliminary injunction against them.
"The dismissal of the claims is a vindication that these claims were wholly without merit, and we are pleased that the state of California has agreed that there is no basis for them," Thomas Balames, principal and managing member of Accelerated Assets, said. "We are very appreciative of the work done by Michael Tu and Cooley on our behalf toward proving what we had told the state of California from the beginning – we did nothing wrong."
Founded in 2000, Accelerated Assets is a leading specialty finance firm concentrated on the acquisition, development, sale, and financing of vacation and leisure-related assets. Accelerated Assets works with its nationally branded vacation ownership counterparts in various value-add structures to provide the trusted experience, creativity and financial resources required to fuel the future of vacation ownership.