HT of Highlands Ranch Inc. et al. v. Hollywood Tanning Systems Inc. et al., No. 07-5718; U.S. District Court (DNJ); opinion by Simandle, U.S.D.J.; filed December 1, 2008. DDS No. 11-7-2302 [38 pp.]
Plaintiffs — four operators of Hollywood Tans franchises located in three states — allege that defendants induced them into entering into unconscionable franchise agreements, defrauded them by sending them deceptive and inflated invoices, and violated the Racketeer Influenced and Corrupt Organizations Act (RICO). Plaintiffs have sued the entity with which they entered into their franchise agreements, Hollywood Tanning Systems Inc. (HTS); two of its officers, Ralph Venuto Sr., and Ralph Venuto Jr.; the company to which HTS assigned its interest in the franchise contracts, HT Franchising, L.L.C.; and Highline Capital Corporation, which provided three of the plaintiffs with equipment leasing and financing services.
