Dave Ramsey slapped with $150 million class-action lawsuit for promoting failed timeshare exit company
Plaintiffs claim they forked over thousands to a failed timeshare exit company on Ramsey's advice
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Seventeen former fans of Dave Ramsey have filed a $150 million class-action lawsuit against the Christian financial guru and Ramsey Solutions CEO, alleging he endorsed a timeshare exit program that defrauded customers.
The lawsuit, which was filed in the U.S. District Court for Western Washington in April and first reported last week by Religion News Service, names Ramsey, marketing company Happy Hour Media Group and The Lampo Group.
The suit alleges that Ramsey, Timeshare Exit Team and Happy Hour Media Group violated the Washington Consumer Protection Act and are guilty of "unjust enrichment" by defrauding customers and committing negligent malpresentation.
The plaintiffs claim they followed Ramsey's advice by paying thousands of dollars to Timeshare Exit Team, which went out of business last year. The company allegedly charged clients at least $5,000 each to get rid of their timeshares and offered a money-back guarantee.
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Former fans of Dave Ramsey are suing him after they claim he endorsed a timeshare exit company that defrauded customers out of millions. (FOX Business / Fox News)
The suit surmises that there are more than 10,000 people "who, during the applicable statute of limitations, paid money to Reed Hein and Time Share Exit Team for the purpose of obtaining an ‘exit’ from their timeshare obligations after being exposed to, and/or in reliance on, the statements and other representations made by Dave Ramsey, and The Lampo Group."
Plaintiffs were not aware Ramsey made $30 million between 2015 and 2021 advertising Timeshare Exit Team, which was run by Kirkland, Washington-based Reed Hein & Associates, who paid him $450,000 per month, according to the suit.
Dave Ramsey holds up a Gazelle debit card created by Ramsey Solutions in a 'Fox and Friends' appearance on Oct. 24, 2022. (Fox News / Fox News)
The suit also notes that Reed Hein's revenues skyrocketed from less than $1 million to more than $40 million after Ramsey began endorsing them on his broadcast.
"To generate customers, Reed Hein employed the Kirkland, Washington-based marketing firm ‘Happy Hour Media Group,’ nationally syndicated radio host Dave Ramsey, and Ramsey’s wholly owned company, The Lampo Group," the suit says.
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"From 2015 to 2021, Reed Hein paid Dave Ramsey and The Lampo Group to make false claims and instruct Ramsey’s faithful listeners to hire Reed Hein."
The U.S. District Court for the Middle District of Florida ruled in 2019 that Timeshare Exit Team's practices were unfair and deceptive, and the company was sued by Washington's attorney general in 2020.
Dave Ramsey attends the 2010 Country Radio Seminar at the Nashville Convention center on Feb. 24, 2010, in Nashville, Tennessee. (Beth Gwinn/Getty Images)
The new lawsuit alleges Ramsey advertised Timeshare Exit Team despite growing indications that it was scamming its clients amid multiple lawsuits, client complaints and flags from government agencies.
The suit seeks damages in excess of $150 million, as well as attorneys' fees and costs, declaratory relief, disgorgement of fees, joint and several damages and "any and all applicable interest on the judgement."
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FOX Business reached out to Ramsey Solutions for comment but did not receive a response by time of publication.