Former Followers Launch $150 Million Class Action Lawsuit Against Dave Ramsey for Endorsing Timeshare Exit Company

Radio host and business coach Dave Ramsey is being sued by a group of his former followers who have launched a class action lawsuit against him and his company for promoting a timeshare exit company accused of wrongdoing.

The group of plaintiffs alleges that Ramsey (pictured above), his Tennessee-based company, The Lampo Group, and marketing company Happy Hour Media Group “violated the Washington Consumer Protection Act, negligent misrepresentation, unjust enrichment, and conspiracy, associated with unfair and deceptive conduct in the marketing, sale, and delivery of ‘timeshare-exit services’ offered to consumers across the United States and Canada.”

The plaintiffs argue that they adhered to Ramsey’s guidance and advice by making “substantial” payments to Timeshare Exit Team, which ceased operations last year.

The timeshare exit company was run at the time under Reed Hein & Associates LLC.

In addition, the plaintiffs argue that the Timeshare Exit Team demanded a minimum payment of $5,000 from each client to facilitate the disposal of their timeshares and provided a money-back assurance.

According to the lawsuit, more than 10,000 individuals “who, during the applicable statute of limitations, paid money to Reed Hein and Timeshare 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.”

“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 lawsuit states, adding, “For his efforts, Reed Hein is believed to have paid Ramsey $450,000 per month, totaling greater than $30 million.”

“A class action is superior to all other available methods for the fair and efficient adjudication of this controversy,” the lawsuit further argues.

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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network.
Photo “Dave Ramsey” by Dave Ramsey. Background Photo “Courtroom” by Carol M. Highsmith.