Attorney General Michelle Henry announced the filing of a complaint against resort developer Eagle Rock Resort Co. LLC (and its parent company and co-subsidiaries) regarding their use of inflated and inaccurate values to sell undeveloped lots of land.

Eagle Rock, which owns and operates a resort in Hazleton, advertises and sells real estate on its resort to consumers from Pennsylvania and elsewhere. The lawsuit alleges that Eagle Rock misrepresents the value of undeveloped lots by using misleading comparisons about the lots and their potential to grow in value.

The lawsuit seeks to recover money for consumers who purchased undeveloped lots, and to stop Eagle Rock from misrepresenting its properties to consumers.

“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,” Attorney General Henry said. “This civil action seeks restitution for consumers who were duped, and to prevent Eagle Rock from selling any more properties based on lies.”

According to the lawsuit, Eagle Rock used false comparisons and other misleading tactics to sell the undeveloped lots at such high prices that virtually no consumers could ever resell and break even — unless they built a house on the property.

Eagle Rock generally charges between $30,000 and $100,000 for a lot; the resale value for those properties is far lower. Contrary to Eagle Rock’s promises during the sales process, undeveloped lots selling on the secondary market often net only $5,000 to $20,000, if they sell at all, according to the lawsuit.

The Office of Attorney General’s lawsuit alleges that Eagle Rock’s sales practices violate Pennsylvania’s Unfair Practices and Consumer Protection Law and the federal Consumer Financial Protection Act. The Attorney General is seeking restitution and injunctive relief for Eagle Rock customers who bought land on the basis of Eagle Rock’s misleading representations. The Office is further asking the court to order Eagle Rock to pay penalties, costs, and attorneys’ fees for its violation of state and federal consumer protection laws.

This complaint has been filed in the United States District Court for the Middle District of Pennsylvania by Deputy Attorney General Pat Gavin.

Any consumers who believe they may have been a victim of Eagle Rock or its co-subsidiaries business practices are urged to file a complaint with the Bureau of Consumer Protection online, by phone 1-800-441-2555, or by emailing scams@attorneygeneral.gov.