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Vacation Break Agrees to Settlement of Suit

June 11, 1997|(Bloomberg News)

Vacation Break USA Inc. said it has agreed to offer refunds and travel extensions to settle a lawsuit involving allegations that it improperly marketed Florida and Bahamas vacation packages to California consumers. The company will make refunds to 20 customers who bought the packages and extend the time other vacationers have to travel as part of the settlement, President Kevin Sheehan said in a news release. Fort Lauderdale, Fla.-based Vacation Break also will pay $50,000 in penalties and litigation costs. California consumer watchdogs accused the company of misleading customers through a direct-mail campaign and failing to properly register to do business in the state. Vacation Break's stock rose 19 cents to close at $8.56 on Nasdaq. California officials had accused Vacation Break of offering "free" vacations via mailings that eventually cost travelers money.

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