Cosmopolitan Confusion: Vegas Condos Converted to Hotel Rooms?Maybe | WSJ

Buyers this week sued the developer of the upscale Cosmopolitan resort and casino underway on the famous strip, complaining that the condo units they?ve agreed to buy are being turned into hotel rooms?and they want their deposits back. The buyers accuse developers Deutsche Bank and Nevada Property 1 of keeping some $100 million in buyers? escrow deposits.

Given how far residential values have plunged in Vegas, some buyers are likely glad to be free of the deal. Still, they want their deposits. Others still want the condo they thought they were buying near the ritzy Bellagio.

But the defendants, according to the dramatically written suit filed in Los Angeles, are playing ?poker with plaintiffs? lives.? They are accused of, among other things, concealing their true intent and maliciously strong-arming buyers into forfeiting the money.

The claims are “entirely without merit,” Amy Rossetti, a spokeswoman for the owners, is quoted as saying in an Associated Press article.