HARRISBURG, PA — Pennsylvania Attorney General Michelle Henry has filed a lawsuit against Eagle Rock Resort Co., LLC, and its parent and subsidiary companies, accusing them of misleading consumers with inflated property values to sell undeveloped land.
Eagle Rock Resort, which operates in Hazleton, allegedly misrepresented the value of its undeveloped lots by using false comparisons and deceptive sales tactics to persuade buyers that the properties were sound investments.
“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 marketed lots priced between $30,000 and $100,000, despite resale values often being as low as $5,000 to $20,000. Sales representatives claimed property values had increased by 15% annually over five years, encouraging buyers to expect significant returns.
Consumers reported high-pressure sales tactics and broken promises of appreciation. One buyer stated they were assured the lot’s value would cover their child’s college tuition within four years, only to later find the property was nearly unsellable.
The lawsuit alleges violations of Pennsylvania’s Unfair Practices and Consumer Protection Law and the federal Consumer Financial Protection Act. The Attorney General’s Office seeks restitution for affected consumers, civil penalties, and a court order halting Eagle Rock’s deceptive sales practices.
