Sandals Resorts says a Class Action lawsuit recently filed against the company in the US District Court for the Southern District of Florida is baseless, both in fact and law, and will be vigorously defended by Sandals.
Sandals has been hit with a massive lawsuit over claims the company worked in concert with local Caribbean governments in a decades-long tax fraud scheme.
Sandals is accused of charging guests 12 percent tax rates but instead of handing over the money to local governments, the funds are ‘secretly retained by Sandals for its own profit’, according to the suit filed in federal court.
New Jersey resident Vitali Feldman is the only named plaintiff in the suit and hired Miami-based law firm Lipcon, Margulies, Alsina & Winkleman to represent him, along with any others who join the suit, which is seeking at least $5 million.
In a statement on Thursday Sandals said the assertion that it has not paid taxes due to the government is categorically false.
“We are proud to be the Caribbean’s largest private employer and in many of the countries in which we operate, we are the biggest economic contributor and taxpayer. Our operations in all territories have been subject to regular audits that have, without exception, always delivered clean reports,” it says.
The resort notes that class action lawsuits are often intended to coerce a company into settlement to avoid high litigation costs and negative publicity.
“We have never imposed unlawful and inappropriate charges on our guests and will not cower to false tactics that claim otherwise. In this digital age – when anybody can say anything, however untrue– trust and track record remain paramount. Our reputation and relationships with our valued guests are four decades in the making, which is why our guests continue to put their faith in us, year after year. For these reasons, Sandals intends to fight this lawsuit to the end as nothing less than a clean slate will do.”
