News

Whiteford Obtains Award of Sanctions in Fraud Case in Federal Court in California

Whiteford client VACAYA, LLC, a leading international LGBTQ+ travel company, was vindicated in Federal Court in California, on allegations of fraud and racketeering activity (RICO).  A Whiteford litigation team led by Aaron A. Nichols and Todd M. Brooks successfully convinced the Court that the case should be dismissed and that sanctions should be entered against the plaintiff, Eric Blaine Hodgson.  In addition to refuting the plaintiff’s fraud and RICO allegations, the defense team uncovered evidence of fraud committed by the plaintiff and demonstrated to the Court that the litigation was, in part, brought in bad faith, resulting in sanctions. 

The Court dismissed the case with prejudice because the plaintiff, after multiple attempts, was unable to provide sufficient “factual allegations to support his fraud claims.”  Based on the fraud uncovered by the Whiteford litigation team, the Judge concluded that monetary sanctions against the plaintiff were appropriate “to prevent and remedy the harms of abusive and wasteful litigation.”  The Judge also found that the plaintiff sued VACAYA “to enforce agreements that he procured in part by fraud.”  The case concluded last month and is captioned as Eric Blaine Hodgson v. VACAYA, LLC, et al., Case No. 2:20-cv-00650-KJM-DB.

Link to Decision & Order (PDF)

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About Whiteford: With nearly 200 attorneys, Whiteford provides a comprehensive range of business law and litigation services to clients ranging from innovative start-ups to middle market companies to Fortune 100 enterprises. With a growing Mid-Atlantic footprint that includes offices in Delaware, D.C., Kentucky, Maryland, New York, Pennsylvania and Virginia, Whiteford serves clients regionally, nationally and internationally.